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2014 (3) TMI 814 - ALLAHABAD HIGH COURTDisallowance of Guest house expenses – Precedential value of Britannia Industries Ltd. Vs. CIT [2005 (10) TMI 30 - SUPREME Court] - Whether the Tribunal have erred in holding that the disallowance under the head "Guest House Expenses" could not be made – Held that:- The law as it has been laid down in Britannia industries has to be looked into as it is binding law being a judgement delivered by the Supreme Court - the intention of the Legislature appears to be clear and unambiguous and was intended to exclude the expenses towards rents, repairs and also maintenance of premises/accommodation used for the purposes of a guest-house of the nature indicated in sub-section (4) of Section 37. If the Legislature had intended that deduction would be allowable in respect of all types of buildings/accommodations used for the purposes of business or profession, then it would not have felt the need to amend the provisions of section 37 so as to make a definite distinction with regard to buildings used as guest-houses as defined in sub-section (5) of Section 37 and the provisions of Sections 31 and 32 would have been sufficient for the said purpose - both the Appellate Authority and the Tribunal committed error in deleting the order of the Assessing Officer who had disallowed the expenses of "Guest House Expenses" – Decided in favour of Revenue.
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