789/CBDT.

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..... houses were not deductible in computation of business income. In coming to this conclusion, the Court relied upon the test laid down in the House of Lords decision in Strong & Co Vs. Woodifield and followed the pronouncement of the Supreme Court in Travancore Titanium Products Ltd. Vs Commissioner of Income tax (60 ITR 277). 2. In the context of this decision of the Punjab & Haryana High Court, t .....

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..... Act. However, the Supreme Court have reviewed their pronouncement in the Travancore Titanium Products ltd. Vs. Commissioner of Income-tax and have held that their earlier view for a permissible deduction there must be a direct intimate connection between the expenditure and the business needs to be qualified by stating that if the expenditure is laid out by the assessee as owner-cum-trader and exp .....

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..... duction. Further attention is invited to the Supreme Court decision in the case of Dehradun Tea Co.Ltd. & others vs CIT, UP (88 ITR 197). 3. In view of the above, the Board have decided in consultation with Ministry of law that urban land tax paid in respect of premises used for purposes of business or profession is allowable as deduction within the meaning of Section 37 and 57(iii) of the Income .....

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