1998 (2) TMI 57

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....irections of this court dated March 14, 1989, the Tribunal referred the following question of law for our consideration under section 256(2) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the expenditure incurred on the maintenance of the guest house and the depreciation on the building used as a guest ho....

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....ng that the assessee would be entitled to the claim of deduction of the expenditure as well as the depreciation in computing the income of the assessee. Mr. C. V. Rajan, learned counsel for the Revenue, submitted the Explanation (sic) introduced in sub-section (5) of section 37 of the Income-tax Act is retrospective in nature and, therefore, the assessee is not entitled to deduction of the expend....

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....or arranged by the assessee for the purpose of providing boarding or lodging including any employee, director or the holder of office on tour or visit to the place, at which such accommodation is situated, the accommodation will be treated as a guest house for the purpose of sub-section (4) of section 37 of the Act. Since the provisions have been introduced only from April 1, 1979, by the Finance ....