1993 (9) TMI 21 - HC - Income Tax

Summary

The High Court of Gujarat delivered a judgment on a case involving deductions under section 36(1)(viii) of the Income-tax Act, 1961, and guest house expenditure under section 37. The court ruled that the deduction under section 36(1)(viii) should be calculated based on total income before deductions under Chapter VI-A. It also held that the guest house expenditure was allowable under section 37 as it was for the business purpose. The court answered both questions in favor of the assessee, disposing of the references without costs.