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TMI Blog2014 (11) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... to exclude from deduction the expenses towards rents, repairs and also maintenance of premises/accommodation used for the purpose of a guest house of the nature indicated in subsection (4) of section 37 - If the Legislature had intended that deduction would be allowable in respect of all types of buildings/accommodation used for the purpose of the business or profession, then the Legislature would not have felt the need to amend the provisions of section 37 so as to make a definite distinction with regard to buildings used as guest houses as defined in section 37(5) and the provisions of sections 31 and 32 would have been sufficient for that purpose - the disallowance made by the AO was right – Decided in favour of revenue. Invocation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ? (2) Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the CIT(A) in holding that since the Octroi was paid to the Ahmedabad Municipal Corporation it was not hit by the provisions of section 40A(3). 2. The assessee had filed appeal before CIT(A) against the order of DCIT(Asstt.) Spl., Ahmedabad under section 143(3) of the Act for the assessment years 1988-89 as the assessing office disallowed all the expenses on gues house including depreciation. CIT(A) allowed the claim of depreciation of ₹ 109180 and the disallowance of rent expenses was confirmed. The CIT(A) also held that since octroi was paid to Ahmedabad Municipal Corporation it was not hit by provisions of section 40A(3). T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee and the questions posed for consideration by us reproduced hereinabove and considering the decision of the Honble the Supreme Court in the case of Britannia Industries (Supra), question no.1, which is raised in the present reference is required to be answered in favour of the revenue. 5.1 The Apex Court in the case of Britannia Industries (supra) has held that while the expression premises and buildings in sections 30 and 32 of the Income Tax Act, 1961 and the expression residential accommodation in the nature of guest house in sub-sections (3), (4) and (5) of section 37 can be similarly interpreted, a distinction has been sought to be introduced for the purpose of section 37 by specifying the nature of the building to be a g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on assessee to pay octroi duty to the Municipal Corporation on the goods transported within the municipal limits. 6.1 Section 40A(3) of Income Tax Act 1961 provides for disallowance of expenses in respect of which a payment or aggregate of payments is made to a person in a day, otherwise than by an account payee cheque drawn on bank or account payee bank draft, exceeds ₹ 20000 and Section 40A(3A) provides for the payment in excess of ₹ 20000 in a day made otherwise than account payee cheque or account payee bank draft, for an allowance made in the assessment for any year on the basis of incurred liability, to be treated as income of the year in which such payment is made. Rule 6DD(b) reads as under: (b) where the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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