2006 (12) TMI 116

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....unal has referred the following question of law under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the 'Tribunal was legally justified in upholding the order of the Commissioner of Income-tax (Appeals) in deleting the disallowance of rent of Rs. 31,200 in respect of ....

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....tion (3) of section 37 of the Act. Since payment of rent was allowable under section 30 of the Act, the provisions of section 37(4) and section 37(5) could not be invoked to disallow payment of rent of the guest house. On appeal by the Department, the Tribunal referred to the cleavage of opinion on the subject among various High Courts and preferred to adopt the interpretation which was favourable....

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....section 30 of the Income-tax Act. The order of the Commissioner of Income-tax (Appeals) on this issue is upheld." We have heard Sri R.K. Upadhyaya, learned counsel appearing for the Revenue, and Sri S.D. Singh, learned counsel appearing for the assessee. We find that the controversy raised herein is squarely covered by the decision of the apex court in the case of Britannia Industries Ltd. v....

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....ed to exclude the expenses towards rents, repairs and also maintenance of premises/accommodation used for the purposes of a guest house of the nature indicated in sub-section (4) of section 37. When the language of a statute is clear and unambiguous, the courts are to interpret the same in its literal sense and not to give it a meaning which would cause violence to the provisions of the statute. I....