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2012 (10) TMI 181 - HC - Income TaxMaintenance of accommodation provided to employees and Executives in Iraq - ITAT allowed the claim - Held that:- the intention of the assessee was not to provide “guest house” accommodation for those who visited the project site on “tour” or “visit”. - Even though the accommodation provided in this case was for the entire duration of the project, what is sought by Section 37(4) and 37(5) is the type of accommodation provided to the employee who merely used them on transitory or temporary basis – having regard to the controlling expression of “tour” and “visit” but also undermine the object of the provision appeal decided in favour of the assessee. Depreciation on motor cars purchased and used in Iraq - ITAT allowed the claim - Held that:- As decided in CIT (Central), Patiala Versus Punjab Chemi.Plants Ltd. [2010 (7) TMI 782 - PUNJAB AND HARYANA HIGH COURT] the second proviso to Section 32(1)(ii) was not to deny depreciation on foreign cars used in foreign countries for business abroad - No dispute that the expenses incurred for the upkeep of the vehicles, were otherwise business expenses, the depreciation, therefore, was directly relatable to business rather than the use of foreign or luxury cars by executives of the assessee - in favour of the assessee. Rental income from the flats - assessable as "income from other sources" OR ' house property ' - Held that:- As the assessee-company was not the "legal owner" of the property in the flats & relying on judgment of the Supreme Court in CIT Versus Podar Cement Pvt. Ltd. [1997 (5) TMI 2 - SUPREME COURT] " owner " is a person who is entitled to receive income from the property in his own right, the rental income from the flats was assessable as "income from other sources" u/s 56 - in favour of assessee. Provisions for completed expenses and expenses incurred on completed project - ITAT allowed the claim - Held that:- As decided in CIT Vs. Triveni Engineering and Industries Limited [2010 (11) TMI 90 - DELHI HIGH COURT] Tribunal has allowed the provision made by the assessee for losses on the ground that the assessee was following completed contract method and provision had been made on account of losses and on the precedent judgement - in favour of assessee.
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