Altamas Kabir, J. - (1.) This reference by the Income-tax Appellate Tribunal at the instance of the Commissioner of Income-tax, West Bengal-II, Calcutta, arises out of the order of the Tribunal in I. T. A. No. 1514 (Cal) of 1992, for this court's view on the following question of law : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in deleting the disallowance made under Section 37(4), the guest house expenditure without giving any specific finding ?"
(2.) As will appear from the statement of the case, the Assessing Officer had disallowed a sum of Rs. 9,96,677 on account of guest-house maintenance under Section 37(4) of the Income-tax Act, 1961. Aggrieved thereby, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals) on the ground that only a sum of Rs. 4,55,630, which had already been included in the return, had been disallowed under Section 37(4) of the above Act and the amount of Rs. 4,86,631 had not been disallowed under Section 37(4), inasmuch as, the same was allowable under Sections 30 and 31. The Commissioner of Income-tax (Appeals) upheld the Assessing Officer's view and dismissed the appeal. The assessee thereupon moved the Income-tax Appellate Tribunal which following its earlier decision in the assessee's own case for the assessment year 1985-86 and the decision of this court in the case of CIT v. Tungabhadra Industries Ltd. [1994] 207 ITR 553 held that the expenditure in respect of repairs amounting to Rs. 4,69,398 and the expenditure in respect of rates and taxes amounting to Rs. 16,133 were allowable as business expenditure.
(3.) This reference arises out of the said order of the learned Tribunal.;