https://www.taxtmi.com/caselaws?id=16051 The High Court of Madras ruled in favor of the assessee, allowing the deduction of expenditure on the maintenance of a guest house and depreciation on the building used as a guest house for the assessment year 1978-79. The court held that the provisions of section 37(5) of the Income-tax Act did not apply retrospectively to preclude the assessee from claiming the deduction, as the relevant amendment only operated from April 1, 1979. The court affirmed the decision of the Appellate Tribunal, emphasizing that the expenses were allowable in computing business income as the guest house did not meet the definition under section 37(4) of the Act. en-us Thu, 05 Feb 1998 00:00:00 +0530 Mon, 31 Aug 2009 16:47:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16051 The High Court of Madras ruled in favor of the assessee, allowing the deduction of expenditure on the maintenance of a guest house and depreciation on the building used as a guest house for the assessment year 1978-79. The court held that the provisions of section 37(5) of the Income-tax Act did not apply retrospectively to preclude the assessee from claiming the deduction, as the relevant amendment only operated from April 1, 1979. The court affirmed the decision of the Appellate Tribunal, emphasizing that the expenses were allowable in computing business income as the guest house did not meet the definition under section 37(4) of the Act. Case-Laws Income Tax Thu, 05 Feb 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16051