TMI Blog2000 (9) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... case of the present assessee for the assessment year 1978-79, the following questions of law under section 256(1) of the Income-tax Act, 1961, have been referred to us for answer : "(i) Whether, on the facts and in the circumstances of the case, the assessee is entitled in law to the allowance of Rs. 2,33,300 being royalty paid to Mettur Beardsell Ltd., as claimed ? (ii) Whether, on the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t enabled the assessee to confer on the product the advantage of better quality and marketability, as revenue expenditure, it is deductible under section 43A of the Act. Relying on the aforesaid decision in case of Ashoka Mills Ltd. [1996] 218 ITR 526 (Guj), the question is answered in favour of the assessee. Learned counsel appearing for the parties state that question No. 2 is squarely covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee. In the case of Gaekwar Mills Ltd. [1992] 193 ITR 734 (Guj), it has been held that residential accommodation maintained in the nature of guest house was covered within the meaning of clause (i) of section 37(4) of the Act. The expenditure has not been incurred for maintenance of residential accommodation but for the guest house and, therefore, no part of such expenditure can be disallowed und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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