Law:

Section:

Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of - Assessee was carrying on business in rented premises where he was a tenant for last 40 to 50 years - He spent certain amount for renovating bath rooms and urinals and for fitting a gate in said premises - Whether since by said expenditure no new asset of enduring nature was brought into existence, it was an admissible deduction under section 37(1) - Held, yes FACTS The assessee was carrying on business in a rented premises. He was a tenant of 40 to 50 years' standing. He spent a certain sum for renovating the bathrooms and urinals and partly for fitting a gate. The Tribunal held that in the particular circumstances by the said expenditure no new asset or asset of an enduring nature was brought into existence and, therefore, it was allowable as business expenditure On reference : HELD The Tribunal was justified in holding that the said expenditure was an admissible deduction under section 37. EDITOR'S NOTE In view of the decision in Thakur Das Shyam Sundar v. Addl. CIT [1974] 93 ITR 27, it was also held that mandir, gaushala and dharmada payments were admissible deduction under section 37. Note : The decision was in favour of assessee. CASES REFERRED TO CIT v. Bijli Cotton Mills (P.) Ltd. [1979] 116 ITR 60 (SC) and Thakur Das Shyam Sunder v. Addl. CIT [1974]93 ITR 27 (All.) (FB). JUDGMENT Satish Chandra, CJ.-The first two questions referred to us relate to the allowability of Mandir, Gaushala and Dharmada payments. These questions were decided by a Full Bench of our court in Thakur Das Shyam Sundar…

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