1990 (5) TMI 58

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ombay. During the assessment year under consideration, however, the assessee's main source of income was the compensation received from the said company in lieu of the termination of its agency as surveyors. In addition to the compensation the assessee also earned commission from he handling of shipping documents and also a certain amount of fee for working as surveyors to other parties. 3. In the earlier assessment years the assessee was receiving commission from its principal at Bombay who subsequently started its own offices at Jamnagar, Veraval, Kandla and Bhavnagar. These offices which were earlier the offices of the appellant firm and which contained all the relevant facilities such as furniture, telephone, telex and typewriters no .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... t" to the place at which such accommodation in situated. According to him it was an undisputed fact that the accommodation is situated. According to him it was an undisputed fact the accommodation was being used on a permanent basis by the employees of the principal stationed at Jamnagar and this could neither be construed ass a "tour or Visii" within the meaning of s. 37(5). He thereafter made an impassioned plea for the disallowance in question to be deleted and the necessary relief to be allowed to the appellant. 6. The learned departmental representative on the other hand strongly supported the orders of the tax authorities and the subsequent arguments advanced by him were in fact a reiteration of the reasons recorded by these author .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... also for the use of its offices and connected facilities at various places in Gujarat as also the provision of residential accommodation to its employees at Jamnagar. The question of invoking the provisions of s. 37(4) and (5) would become relevant only if the property is being used as a guest house and that also in connection with a "tour or visit". It would be necessary at this stage to reproduce sub-s. (5) of s. 37 and this reads as under: "(5) For the removal of doubts, it is hereby declared that any accommodation, by whatever name called, maintained, hired, reserved or otherwise arranged by the assessee for the purpose of providing lodging or boarding and lodging to any person (including any employee or, where the assessee is a com .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X