BRITANNIA INDUSTRIES LTD. versus COMMISSIONER OF INCOME TAX, WEST BENGAL, KOLKATA AND ANR.

BRITANNIA INDUSTRIES LTD. versus COMMISSIONER OF INCOME TAX, WEST BENGAL, KOLKATA AND ANR.

Section 37(4) of the Income Tax Act, 1961, excludes expenses incurred on rents, repairs, depreciation, and maintenance of guest houses from deductions regardless of their specific allowance under Sections 30-36. The legislative intent is clear and unambiguous, requiring courts to give effect to the literal meaning.

Parties
Appellant: Britannia Industries Ltd.; Respondents: Commissioner of Income Tax, West Bengal, Kolkata and Anr.
Jurisdiction
India
Judgment Date
05 October 2005
Procedural Posture
Civil Appeal / Judgment of the Supreme Court Following Appeal From Calcutta High Court
Outcome
Appeal dismissed
Legal Topics
Deduction of Expenditure, Interpretation of Section 37(4) of Income Tax Act, Expenditure on Guest Houses
Income Tax Deduction of Expenditure Interpretation of Section 37(4) of Income Tax Act Expenditure on Guest Houses

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Parties

Britannia Industries Ltd.

Appellant

Commissioner of Income Tax, West Bengal, Kolkata and Anr.

Respondents

Procedural Posture

Civil Appeal / Judgment of the Supreme Court Following Appeal From Calcutta High Court

Legal Issues

  1. 1 Whether expenses towards rents, repairs, depreciation and maintenance of guest houses used for business are allowable deductions under Sections 30-36 or Section 37 of Income Tax Act

Ratio Decidendi

Section 37(4) of the Income Tax Act, 1961, excludes expenses incurred on rents, repairs, depreciation, and maintenance of guest houses from deductions regardless of their specific allowance under Sections 30-36. The legislative intent is clear and unambiguous, requiring courts to give effect to the literal meaning.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed, no order as to costs