The C.i.t. Mumbai City-Ii v. The Andhra Valley Power Supply

(-1-) MGN IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL, CIVIL JURISDICTION IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL, CIVIL JURISDICTION INCOME TAX APPEAL NO.43 OF 2001 The C.I.T. Mumbai City-II....Appellant Vs. The Andhra Valley Power Supply Co. Ltd.....................Respondent Mr. P.S. Sahadevan, for the Appellant Mr.P.C.Tripati with Mr. Dinesh Vyas for the Respondent CORAM: F.I. CORAM: F.I.REBELLO&R.S.MOHITE,JJ.DATED: 29TH JANUARY,2008 R.S.MOHITE,JJ. DATED: 29TH JANUARY,2008 P.C.: P.C.: . Admit on the following questions:- 1. "Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in deleting the disallowances u/s.37(4) of the I.T.Act on account of Guest House expenses? 2. Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in deleting the disallowances made on account of Ash Disposal Expenses as Capital Expenditure?" 2. In so far as the question of law is (-2-) concerned, the various expenses under the head "Guest House Expenses" are set out as under;- a) Rates & Taxes Rs.29,260/- b) Repairs Rs.1,10,440/- c) Insurance Rs.6,000/- d) Bonus Rs.6,102/- 3. Learned Counsel agree that in so far as Items (a), (b) and (c) are concerned they are covered in favour of Revenue by the judgment of this Court in 278 ITR 546. 4. In so far as Item (d) Bonus is concerned, it is submitted that the issue is still open. 5. In so far as question of law No.2 is concerned, a similar issue had come up for consideration before this Court in Income Tax Appeal No.72 of 1999 in The Commissioner of Income Tax, Mumbai vs. The Tata Hydro Electric Power Supply Co. Ltd., Mumbai which was disposed of on December 7, 1999. In that matter this Court did not interfere with the findings recorded by the ITAT. Considering the same in our opinion, in so far as Question No.2 (-3-) as framed will not arise. 6. The amount of bonus as mentioned earlier is in a sum of Rs.6,102/-. That issue can be left open for consideration in appropriate case as even otherwise the tax incidence in so far as this issue is concerned is less than Rs.4.00 lakhs. 7. The question of law No.1, therefore, in so far as Guest House expenses to the extent of rates and taxes, repairs and insurance are answered in favour of the Revenue. Appeal disposed of accordingly. (R.S.MOHITE, J.) (R.S.MOHITE, J.)(F.I.REBELLO, J.) (R.S.MOHITE, J.) (F.I.REBELLO, J.)