Commissioner of Income Tax vs Rampur Distillery and Chemical Co. Ltd.

In the Allahabad High Court M. Katju & Prakash Krishna, JJ.

By the Court

This is Income Tax reference u/s 256(1) of Income Tax Act in which following question has been referred to us for our opinion :

"Whether as the facts and circumstances of the case, the learned Tribunal was right in law in not sustaining the disallowance of repair expenses of a guest house under the provision of section 37(4) of the Income Tax Act?"

Learned counsel for the assessee has relied on the decision of the Bombay High Court in Commissioner of Income Tax Vs. Chase Bright Steel Ltd. (No. 1), which has been followed in the decision ins 187 ITR 660 ; Commissioner of Income Tax Vs. Kaira Dist. Co-operative Milk Producers Union Ltd., Commissioner of Income Tax Vs. Ahmedabad Mfg. and Calico Printing Co. Ltd., BIHAR INSTITUTE OF MINING AND MINE SURVEYING Vs. COMMISSIONER OF Income Tax. etc.

We have carefully perused the above decisions and we are in respectful agreement with the same. In view of the above we answer the question in the affirmative, i.e., in the favour of the assessee and against the department.