9911796707
TMI Blog2012 (6) TMI 854X X X X Extracts X X X X X X X X Extracts X X X X ..... penditure was related to transit house and not to Guest House? (II) Whether the Tribunal was justified in holding that the expenditure on maintenance of Guest House/Transit House was business expenditure? (III) Whether the Tribunal was justified in giving direction to the Assessing Officer to consider the issue of allowing depreciation of sale off assets/surveyed off assets in the light of provisions of Section 43(6) and 50 of the Income tax Act? 3. As per the case, the learned Assessing Officer vide assessment order dated 28th March, 1995 allowed 5% of the total expenditure as deduction on account of expenditure incurred by the assessee in maintaining the Guest house. The assessee claimed that he had to incur the said expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to the view of Income Tax Appellate Tribunal, was justified expenditure. 4. Aggrieved against the said order of Income Tax Appellate Tribunal, the Revenue has preferred this appeal under Section 260A of the Income Tax Act, 1961. 5. Learned counsel for the appellant submitted that the Income Tax Appellate Tribunal has gravely erred in law in allowing the claim of the assessee to the extent of 25% of the expenditure incurred on and over the Guest House. 6. We have considered the submissions of the learned counsel for the parties and perused the facts of the case. It appears from the questions formulated that some impression may have been carried that there was some difference in between Transit House and the Guest House and that w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would have been the view of any of the authorities below on the basis of any evidence produced by Revenue or in view of the evidence produced even by the assessee. Therefore, these two orders i.e., assessment order as well as appellate order were liable to be set aside on this ground and were rightly set aside by the Tribunal. The Income Tax Appellate Tribunal has carefully considered the issue and thereafter held that the assessee was entitled to deduction of 25% of the total expenditure referred above and, therefore, we do not find any illegality in the said finding. 8. Question nos.1 and 2 are answered accordingly and so far question no.3 is concerned, it is only a question, consequent to the issue raised in question nos.1 and 2 , whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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