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TMI Blog1996 (11) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... rence to expenses such as advertisement, payment to hotels and motor car expenses. The matter was taken up before the Commissioner of Income-tax (Appeals) to argue that repairs to car allowed under section 31 must be excluded while making disallowance. The first appellate authority considered the question in paragraph 6 of its judgment. It was argued that under section 31 of the Act, the car expenses would have to be excluded. The first appellate authority decided that under section 37(3A) disallowance can be made on such expenses as are allowed under section 37(1) of the Act only. Therefore with regard to the car expenses amounting to Rs. 48,201, the first appellate authority granted deduction in regard thereto. The matter was taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notwithstanding anything contained in sub-section (1)" would be necessary. We have considered the position in the following manner : the statutory provisions relating to profits and gains of business or profession are found from section 28 onwards of the Income-tax Act, 1961. They relate to consideration of certain allowances, depreciation and deduction. The provision relating to deduction from expenditure is one amongst the said provisions, and with reference to the group, section 57 is the last one and even as such headed as "General" in the process. We have considered the intrinsic material from section 37 by way of an aid. Section 37(1) speaks of expenditure laid out or expended wholly or exclusively for the purpose of business or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the aggregate expenditure, the provisions of section 37(1) of the Act would have any occasion of interplay. Reading the plain language of all the statutory provisions other than section 37(1) of the Act, we have held that it would be obvious that each one of the subsequent provisions gets enacted with the same prefix of the non-obstante clause which means that section 37 is of a residuary character with reference to the earlier statutory provisions of dealing with the aspect of deduction except section 37(1) of the Act. The conclusion, we have held, that flows from the above decision is that the statutory provision of section 37 of the Act relates to any expenditure in the process of computing the income chargeable under the head "Profits a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,526 --------------- 10,91,067 ---------------- In regard to which it was claimed on behalf of the assessee that under motor car expenses Rs. 48,201 was spent on repairs to the car and salary to drivers which was disallowed by the officer being unable to treat them as the expenses on running and maintenance of motor cars. In our judgment the approach of the Income-tax Officer will have to be endorsed. For the above reasons we answer the question in the negative---in favour of the Revenue and against the assessee. A copy of this judgment under the seal of the court and the signature of the Registrar shall be forwarded to the Income-tax Appellate Tribunal, Cochin Bench, for passing consequential orders. - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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