India - Income Tax Act 2010 - Saarc

1.251 CH. IV - COMPUTATION OF BUSINESS INCOME S. 40(5) 83 [* * *]Building, etc., partly used for business, etc., or not exclusively so used.8438. (1) Where a part of any premises is used as dwelling house by the assessee,—(a) the deduction under sub-clause (i) of clause (a) of section 30, inthe case of rent, shall be such amount as the 85 [Assessing] Officermay determine having regard to the proportionate annual valueof the part used for the purpose of the business or profession, andin the case of any sum paid for repairs, such sum as is proportionateto the part of the premises used for the purpose of the business orprofession;(b) the deduction under clause (b) of section 30 shall be such sum as the85[Assessing] Officer may determine having regard to the part so used.(2) Where any building, machinery, plant or furniture is not exclusively used forthe purposes of the business or profession, the deductions under sub-clause (ii)of clause (a) and clause (c) of section 30, clauses (i) and (ii) of section 31 and86[clause (ii) of sub-section (1)] of section 32 shall be restricted to a fairproportionate part thereof which the 87 [Assessing] Officer may determine,having regard to the user of such building, machinery, plant or furniture for thepurposes of the business or profession.Managing agency commission.39. [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]Amounts not deductible.40. Notwithstanding anything to the contrary in sections 30 to 88 [38], thefollowing amounts shall not be deducted in computing the income chargeableunder the head “Profits and gains of business or profession”,—89(a) in the case of any assessee—83. Omitted by the Finance Act, 1997, w.e.f. 1-4-1998. Prior to its omission, sub-section (5), asinserted by the Finance Act, 1983, w.r.e.f. 1-4-1979, read as under :“(5) For the removal of doubts, it is hereby declared that any accommodation, by whatevername called, maintained, hired, reserved or otherwise arranged by the assessee for thepurpose of providing lodging or boarding and lodging to any person (including anyemployee or, where the assessee is a company, also any director of, or the holder of anyother office in, the company), on tour or visit to the place at which such accommodationis situated, is accommodation in the nature of a guest-house within the meaning of subsection(4).”84. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.85. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.86. Substituted for “clauses (i), (ii), (iia) and (iii) of sub-section (1) and sub-section (1A)” by theTaxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1988.87. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.88. Substituted for “39” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.89. See also Circular No. 91/58/66-ITJ(19), dated 18-5-1967 and Circular No. 786, dated7-2-2000. For details, see Taxmann’s Master Guide to Income-tax Act.