9911796707
TMI Blog1988 (11) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... led to investment allowance and depreciation, as per rates applicable to plant/machinery and not to building. This very issue had come up for consideration before the Tribunal in asst. yr. 1979-80 and the Tribunal by their order dt. 26th Feb., 1985 in ITA No. 2498/Bom/1983, sent the issue back to the ITO for fresh decision as there were no facts on record to appreciate the rate of pathways used in the business of the assessee. The facts and circumstances being similar, we set aside the matter this year as well and remit the same to the file of the ITO for fresh disposal, keeping in view the directions contained in the aforesaid order of the Tribunal. 3. The next ground is against disallowance of Rs. 11,500 being rent paid to Sri V.H. Soma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'guest house'); (ii) in relation to the assessment year commencing on the 1st day of April, 1971, or any subsequent assessment year, no allowance shall be made in respect of depreciation of any building used as a guest house or depreciation of any assets in a guest house; Provided that the aggregate of the expenditure referred to in cl. (i) and the amount of any depreciation referred to in cl. (ii) shall, for the purposes of this subsection be reduced by the amount, if any, received from persons, using the guest-house; Provided further that nothing in this sub-section shall apply in relation to any guest house maintained as a holiday home if such guest house— (a) is maintained by the assessee who has throughout the previous year emp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided in s. 30. It provides that rent paid for premises used for the purposes of business or profession shall be allowed as a deduction. Guest house used by the employees cannot be disputed to have been used for business purposes. Therefore, in our opinion, s. 37(4) is not subject to anything contained in ss. 30 to 36. In the circumstances, the law provides two diametrically opposite views. With regard to rent paid for guest house used for the purpose of business, s. 30 provides for the allowance of rent whereas s. 37(4) denies the allowance. Neither of these two provisions is subject to each other. No preference can be given to either. In such a situation, the view favourable to the assessee should be adopted. We, therefore, hold that irres ..... X X X X Extracts X X X X X X X X Extracts X X X X
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