Commissioner of Income Tax vs Benaras House Ltd.

The following question of law has been referred for our'' consideration u/s 256(1) of the Income Tax Act, 1961:

Whether on the facts and in the circumstances of the case, the Hon''ble ITAT was justified in holding that the current repairs on cars should be allowed u/s 31 of the Income Tax Act and the same are outside the purview of Section 37(3A)?

Learned Counsel for the revenue has drawn our attention to three decisions being Commissioner of Income Tax Vs. Price Waterhouse, , Commissioner of Income Tax Vs. General Electric Co. of India Ltd., and George Williamson (Assam) Ltd. Vs. Commissioner of Income Tax,

We have gone through these decisions and do not find any error in the view taken to the effect that repair and maintenance of motor cars is not subject to the restrictions provided in Section 37(3A), read with Section 37(3B) of the Income Tax Act, 1961.

Learned Counsel for the revenue states that there is also a similar decision of the Punjab and Haryana High Court but he is unable to give the citation at the moment.

Following the view taken by the other High Courts, we answer the reference in the affirmative in favor of the assessed and against the revenue.

The reference is disposed of.