1991 (4) TMI 124

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.... by T. D. SUGLA J. -In this reference at the instance of the assessee relating to the assessment year 1972-73, the Income-tax Appellate Tribunal has referred to this court the following question of law for opinion under section 256(1) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the assessee, in the matter of computation of capital for the purpos....

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....circumstances of the case, the sum of Rs. 21,225 being 25% of the expenses incurred for advertisement in souvenirs has been rightly disallowed ? 2. Whether, on the facts and in the circumstances of the case, the claim of the applicant for depreciation amounting to Rs. 6,875 on the house at Lonavala has been rightly disallowed under section 37 on the ground that it is a guest house ?" It is b....

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..... 1 in the negative and in favour of the assessee. As regards the second additional question, Mr. Mehta invited our attention to our court's judgment in the case of CIT v. Chase Bright Steel Ltd. (No. 1) [1989] 177 ITR 124, to which one of us (Sugla J.) was party. It was held in that case that sub-section (4) of section 37 no doubt was a non-obstante clause but it was non-obstante vis-a-vis sub....