COMMISSIONER OF INCOME TAX Vs. IBM INDIA LTD

JUDGEMENT

(1.) The Revenue has come up in thin appeal challenging the order passed by the Commissioner of Income Tax (Appeals), Bangalore, which has been confirmed by the Income Tax Appellate Tribunal, Bangalore, in ITA No. 683/Bang/2000 dated 28.5.2004 raising the following substantial question of law:

(2.) The facts leading to this appeal are as hereunder:

(3.) The main contention of the appellant before us is that the expenses incurred by the assesses to maintain the transit accommodation has been considered by the Commissioner of Income Tax (Appeals) and the Tribunal as it falls under Section 37(4) and (5) of the Income Tax Act and such accommodation ought to be treated as guest house expenditure. Relying upon the judgment of the Supreme Court in Britannia Industries Ltd. v. Commissioner of Income Tax and Anr., 2005 278 ITR 546 (SC), the learned cousnel for the Revenue contends, that the expression guest-house includes the residential accommodation. Therefore, any expenditure incurred by the assessee towards the maintenance of the transit residential house has to be treated as a guest-house and not liable for deduction. Therefore, he requests this Court to set aside the orders passed by the Commissioner of Income Tax (Appeals) and the Tribunal by answering the question of law in favour of the Revenue.