1994 (12) TMI 66 - HC - Income Tax

Assessment Year, Business Expenditure, Expenditure On Maintenance, Guest House, Income Tax Act, Law Applicable To Assessment

Summary

The High Court of Bombay ruled on a reference under the Income-tax Act, 1961 regarding expenses related to maintenance of a guest house for assessment years 1970-71, 1971-72, and 1972-73. For 1970-71, expenses were allowed under section 37(3), but for 1971-72 and 1972-73, expenses were disallowed under section 37(4)(i). The judgment favored the Revenue based on a previous case.