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TMI Blog2013 (2) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... t paid for such premises and the cost of repairs incurred, if any, shall be allowed to be deducted. Crucial words in section 30 are "use of the premises for the purpose of business or profession". By no stretch of imagination, it can be inferred that the hire charges paid for advertisement hoardings would also come within the ambit of use of the premises for the purpose of business. Section 30 has nothing to do with advertisement, publicity or sales pro-motion. Giving very plain meaning of the language in section 30, it has to be construed as dealing with the deduction of rent, rates, taxes, repairs and insurance paid for the premises used for the business or profession either as a tenant or otherwise as a tenant. It does not take within it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 30 of the Act ? Assessment year 1986-87 Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that excise duty is a direct cost of manufacture even after recording a finding of fact that the moment goods are produced the levy is fastened ? 2. The second question has to be answered in favour of the Revenue and against the assessee in view of the decision of this court in a case of the assessee itself in R. C. No. 33 of 1995, dated June 9, 2006 (Bakelite Hylam Ltd. v. CIT) wherein a similar question was considered and answered against the assessee. The counsel does not dispute this. We are only required to consider the question with reference to the assessment year 1985-86. 3. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of the second question as noticed hereinabove. 4. We have heard the counsel for the assessee and the junior standing counsel for Income-tax Department. 5. Hereinbelow, we quote sections 30 and 37 of the Act to the extent necessary as they existed at the relevant time in the Act. "30. Rent, rates, taxes, repairs and insurance for buildings.-In respect of rent, rates, taxes, repairs and insurance for premises, used for the purposes of the business or profession, the following deduc-tion shall be allowed- (a) where the premises are occupied by the assessee- (i) as a tenant, the rent paid for such premises ; and further if he has undertaken to bear the cost of repairs to the premises, the amount paid on account of such repairs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the head 'Profits and gains of business or profession'. (3B). The expenditure referred to in sub-section (3A) is that incurred on- (i) advertisement, publicity and sales promotion ; or (ii) running and maintenance of aircraft and motor cars ; or (iii) payments made to hotels. Explanation.-For the purposes of sub-sections (3A) and (3B),- (a) the expenditure specified in clause (i) to clause (iii) of sub-section (3B) shall be the aggregate amount of expenditure incurred by the assessee as reduced by so much of such expenditure as is not allowed under any other provision of this Act ; (b) expenditure on advertisement, publicity and sales promotion shall not include remuneration paid to employees of the assessee engaged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s pro-motion. Giving very plain meaning of the language in section 30, it has to be construed as dealing with the deduction of rent, rates, taxes, repairs and insurance paid for the premises used for the business or profession either as a tenant or otherwise as a tenant. It does not take within its fold expenditure incurred for advertisement or publicity. If section 30 is inter-preted as also allowing deduction of the hire charges for the space for the purpose of advertisement, it would amount to supplying casus omissus. 7. A tax law has to be interpreted strictly. Whatever may be the hardship, nothing can be added nor something can be ignored. It must always be the endeavour of the court to give a plain meaning to the words used in the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly at the language used'. Relying upon this passage Lord Upjohn said : 'Fiscal measures are not built upon any theory of taxation'." 8. The above passage was quoted with approval in CIT v. Kasturi and Sons Ltd. [1999] 237 ITR 24 (SC) ; [1999] 3 SCC 346 ; AIR 1999 SC 1275. In State of West Bengal v. Kesoram Industries Ltd. [2004] 266 ITR 721 (SC) ; [2004] 10 SCC 201, citing the same, the apex court summed up the following settled principles of interpretation (i) in interpreting a taxing statute, equi-table considerations are entirely out of place. Taxing statutes cannot be interpreted on any presumption or assumption. A taxing statute has to be interpreted in the light of what is clearly expressed ; it cannot imply any-thing which is not e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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