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of <h1>Tribunal allows investment allowance, depreciation on pathways, and rent for guest house.</h1> The Tribunal ruled in favor of the appellant, setting aside the disallowance of investment allowance and depreciation claimed on pathways used for ... - Issues:1. Disallowance of investment allowance and depreciation claimed on pathways.2. Disallowance of rent paid for guest house premises.Analysis:Issue 1: Disallowance of investment allowance and depreciation claimed on pathwaysThe appellant contested the disallowance of investment allowance and depreciation on pathways used for business purposes. The Tribunal had previously remitted a similar issue back to the ITO for fresh decision due to insufficient facts. In the current case, the Tribunal decided to set aside the matter and remit it to the ITO for fresh disposal, in line with the previous order. The pathways were argued to be part of the plant entitled to investment allowance and depreciation, not to building rates. The Tribunal emphasized the need for the ITO to consider the specific use of pathways in the business operations before making a decision.Issue 2: Disallowance of rent paid for guest house premisesThe dispute revolved around the disallowance of Rs. 11,500 as rent paid to an individual, categorized as relating to a guest house by the ITO. The appellant argued that the premises were not a guest house as they were primarily used by employees visiting the factory. The Departmental Representative cited provisions of Section 37(5) to support the disallowance, stating that even employee-used premises can be considered a guest house. However, the Tribunal analyzed Sections 30, 37(4), and 37(5) to conclude that rent paid for guest house premises used for business purposes should be allowed under Section 30. The Tribunal referenced a previous case to support their decision, emphasizing that the law presented conflicting views but favored adopting the view beneficial to the assessee. Therefore, the Tribunal allowed the appeal and directed the ITO to permit the claimed rent payment of Rs. 11,500.In conclusion, the appeal was treated as allowed for statistical purposes, with the Tribunal ruling in favor of the appellant regarding both the disallowance of investment allowance and depreciation on pathways and the disallowance of rent paid for guest house premises.
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