2014 (11) TMI 591

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....n on guest house?     (2) Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the CIT(A) in holding that since the Octroi was paid to the Ahmedabad Municipal Corporation it was not hit by the provisions of section 40A(3). 2. The assessee had filed appeal before CIT(A) against the order of DCIT(Asstt.) Spl., Ahmedabad under section 143(3) of the Act for the assessment years 1988-89 as the assessing office disallowed all the expenses on gues house including depreciation. CIT(A) allowed the claim of depreciation of Rs. 109180 and the disallowance of rent expenses was confirmed. The CIT(A) also held that since octroi was paid to Ahmedabad Municipal Corporation it was not hit by provisio....

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....half of the assessee and the questions posed for consideration by us reproduced hereinabove and considering the decision of the Honble the Supreme Court in the case of Britannia Industries (Supra), question no.1, which is raised in the present reference is required to be answered in favour of the revenue. 5.1 The Apex Court in the case of Britannia Industries (supra) has held that while the expression "premises and buildings" in sections 30 and 32 of the Income Tax Act, 1961 and the expression "residential accommodation in the nature of guest house" in sub-sections (3), (4) and (5) of section 37 can be similarly interpreted, a distinction has been sought to be introduced for the purpose of section 37 by specifying the nature of the buildin....

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....fact was on assessee to pay octroi duty to the Municipal Corporation on the goods transported within the municipal limits. 6.1 Section 40A(3) of Income Tax Act 1961 provides for disallowance of expenses in respect of which a payment or aggregate of payments is made to a person in a day, otherwise than by an account payee cheque drawn on bank or account payee bank draft, exceeds Rs. 20000 and Section 40A(3A) provides for the payment in excess of Rs. 20000 in a day made otherwise than account payee cheque or account payee bank draft, for an allowance made in the assessment for any year on the basis of incurred liability, to be treated as income of the year in which such payment is made. Rule 6DD(b) reads as under:      &....