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of <h1>High Court rules in favor of corporation's full deduction for maintenance charges, assessment year 1990-91.</h1> <h3>Haryana Roadways Engg. Corporation Limited, Versus Commissioner of Income Tax Rohtak</h3> Haryana Roadways Engg. Corporation Limited, Versus Commissioner of Income Tax Rohtak - [2012] 344 ITR 454 Issues:1. Deduction of maintenance charges for buses2. Deduction of expenses for business purpose3. Classification of income from rent of canteenIssue 1: Deduction of maintenance charges for buses:The appeal involved determining whether the appellant corporation was entitled to a deduction of Rs. 1000 per bus for 670 buses, instead of Rs. 2000 per bus, for the assessment year 1990-91. The appellant argued that the Tribunal had ignored the contractual liability and necessary conditions of sale and warranty, making the deduction of Rs. 1000 per bus inadequate. The Tribunal had increased the deduction to Rs. 1000 per bus, which the Revenue did not appeal against, indicating acceptance of the deduction but disputing the quantum. The High Court held that the appellant was entitled to the full deduction of Rs. 2000 per bus, as per the agreement terms, and allowed the appeal in favor of the assessee.Issue 2: Deduction of expenses for business purpose:The second issue revolved around the deduction of Rs. 1,61,749 as expenses incurred for the business purpose, which were claimed in the succeeding year under appeal. However, the Tribunal did not address this issue in its order, and the High Court declined to consider it as it did not arise from the Tribunal's order. Therefore, this issue was not further discussed or decided upon.Issue 3: Classification of income from rent of canteen:Regarding the income from the rent of the canteen in the factory premises, the Tribunal had classified it as income from property and not business income. The appellant disputed this classification, arguing that depreciation on the building should be allowed. However, the High Court did not address this issue as it was not pressed by the appellant and did not arise from the Tribunal's order. Therefore, this issue was also not further analyzed or decided upon.In conclusion, the High Court primarily focused on the first issue related to the deduction of maintenance charges for buses, ruling in favor of the appellant and allowing the full deduction of Rs. 2000 per bus. The other issues regarding expenses for business purpose and the classification of income from rent of the canteen were not addressed in detail as they were either not pressed by the appellant or did not directly arise from the Tribunal's order.
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