PUROLATOR INDIA LTD. Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this reference under s. 256(1) of the IT Act, 1961, the following question of law has been referred for our opinion :

(2.) WHETHER , on the facts and circumstances of the case, the Tribunal was correct in law in holding that expenditure on rent of staff transit houses or on the repairs thereof was disallowable under ss. 37(4) and 37(5) of the IT Act, while the same were specifically allowable under ss. 30 to 36 of the Act -

(3.) IT is common ground that insofar as question No. 1 is concerned, it is required to be answered in the negative, in favour of the Revenue and against the assessee in view of the decision of the Supreme Court in CIT vs. Patel Brothers & Co. Ltd. & Ors. (1995) 126 CTR (SC) 132 : (1995) 215 ITR 165 (SC). Insofar as in so far as question No. 2 is concerned, it is common ground that in view of the decision of the Supreme Court in Britannia Industries Ltd. vs. CIT (2005) 198 CTR (SC) 313 : (2005) 278 ITR 546 (SC), it is required to be answered in the affirmative, in favour of the Revenue and against the assessee.