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ARBITRATION PETITION NO.549 OF 2013

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Bombay High Court Allows Deduction for Transit Quarter Maintenance in Favor of Assessee — Premises Used for Business Purposes Not a Guest House Under Section 37(4) of Income Tax Act, 1961. Expenditure on Accommodating Employees on Business Visits is Allowable as Business Expenditure Under Section 37(1).

The case involved a reference under Section 256(1) of the Income Tax Act, 1961, at the instance of the assessee, M/s. Greaves Cotton & Co. Ltd., arisi...

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Supreme Court Dismisses Revenue’s Appeal, Holding Compensation for Partial Termination of Agency is Capital Receipt. Termination of Agency for Territory Outside Hyderabad State Results in Sterilisation of Capital Asset, Not Taxable as Business Income Under Indian Income-tax Act, 1922.

The dispute arose from the income tax assessment of Messrs. Vazir Sultan & Sons, a registered firm, for the assessment year 1951-52. The firm was appo...