https://www.taxtmi.com/caselaws?id=36934 The High Court held that the expenditure on maintaining a guest house at the factory premises was not deductible as it did not meet the criteria of being exclusively for strangers, as required by the Income Tax Act. The Court disallowed the claim due to non-compliance with the prescribed rules, ruling in favor of the revenue. Additionally, the Court determined that the assessee was not entitled to a development rebate for new machinery as the reserve from earlier years did not fulfill the statutory requirement of creating a reserve from the profits of the relevant previous year. The Court ruled against the assessee, awarding costs to the Commissioner. en-us Wed, 11 Jul 1979 00:00:00 +0530 Thu, 25 Mar 2010 15:13:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36934 The High Court held that the expenditure on maintaining a guest house at the factory premises was not deductible as it did not meet the criteria of being exclusively for strangers, as required by the Income Tax Act. The Court disallowed the claim due to non-compliance with the prescribed rules, ruling in favor of the revenue. Additionally, the Court determined that the assessee was not entitled to a development rebate for new machinery as the reserve from earlier years did not fulfill the statutory requirement of creating a reserve from the profits of the relevant previous year. The Court ruled against the assessee, awarding costs to the Commissioner. Case-Laws Income Tax Wed, 11 Jul 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36934