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Judgment
D.A. Mehta, J.—On 21/2/2000 when the appeal was admitted, following substantial question of law was framed by the Court:
Whether, the Appellate Tribunal is right in law and on facts in deleting the addition made on account or expenditure in respect of guest house?
Assessment Year in question is 1986-1987. On behalf of the appellant reliance has been placed upon a decision of the Apex Court in the case of Britannia Industries Ltd. Vs. Commissioner of Income Tax, West Bengal, Kolkata and Another, to submit that the issue in controversy stands concluded in favour of the Revenue by the said decision, which is not disputed by Mr. Shah on behalf of the respondent. In the circumstances, it is not necessary to set out the facts and contentions in detail.
Applying the ratio of the aforesaid decision to the facts of the present case, it is held that the Tribunal was not justified in holding that expenditure incurred on account of rent and repairs of guest house u/s 37(4)/37(5) of the Act was allowable as deduction. The question is answered in the negative, i.e., in favour of the Revenue and against the Assessee.
The appeal is allowed with no order as to costs.