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TMI Blog2005 (3) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... ect in respect of the other provisions pertaining to the allowances of expenditure under sections 30 to 36 – held that the expenditure on repairs dealt with in section 31 of the Act is entirely different from the expenditure on maintenance covered by sub-sections (3A) and (3B) of section 37 - Thus, the references are answered in the affirmative, i.e., in favour of the assessee and against the Revenue. - - - - - Dated:- 16-3-2005 - Judge(s) : D. K. JAIN., HEMANT GUPTA. JUDGMENT The judgment of the court was delivered by D.K. Jain C.J.- At the instance of the Revenue, the Income-tax Appellate Tribunal, Chandigarh Bench (for short, "the Tribunal"), has referred, under section 256(1) of the Income-tax Act, 1961 (for short, "the Act") ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee was entitled to claim its deduction under section 31 of the Act. Not being satisfied with the view taken by the Commissioner, the Revenue as well as the assessee took the matter in further appeal to the Tribunal. Both the appeals were allowed partly by the Tribunal. On the Revenue's moving an application under section 256(1) of the Act, the aforementioned question has been referred for the opinion of this court. We have heard Mr. D.S. Patwalia, learned counsel for the Revenue, and Mr. S.K. Mukhi, learned counsel for the assessee. It is submitted by Mr. Patwalia, that section 37(3A) of the Act, being a substantive provision, it had an overriding effect on all the provisions in the Act pertaining to allowance of expenditur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e business or profession shall be allowed in computing the income chargeable under the head 'Profits and gains of business or profession'." Section 37(3A) and (3B) of the Act is in the following terms: "Section 37(3A): Notwithstanding anything contained in sub-section (1), where the expenditure or, as the case may be, the aggregate expenditure incurred by an assessee on any one or more of the items specified in sub-section (3B) exceeds one hundred thousand rupees, 20 per cent. of such excess shall not be allowed as deduction in computing the income chargeable under the head 'Profits and gains of business or profession'. Section 37(3B): The expenditure referred to in sub-section (3A) is that incurred on- (i) advertisement, public ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and machinery contemplated undersection 31 of the Act is entirely different from the expenditure towards maintenance of motor cars contemplated in section 37(3B) of the Act. This was so held by the Gauhati High court in George Williamson (Assam) Ltd. v. CIT [1997] 223 ITR 203. In the said decision, it was held that the expenditure on repairs dealt with in section 31 of the Act is entirely different from the expenditure on maintenance covered by sub-sections (3A) and (3B) of section 37 of the Act. We are in respectful agreement with the said view. We are, therefore, of the opinion that the items of expenditure covered by sections 30 to 36 of the Act are different from the items of expenditure covered in the sub-sections of section 37 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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