Report No. 12

38. Building etc. partly used for business etc. or not exclusively so used.-

(1) Where any substantial part of any premises if used as a dwelling house by the assessee, the deduction under section 30(a)(i) [10(2)(i) and (ii)] shall be such sum (as the Income-tax Officer may determine, having regard-

(a) in a case under section 30(a)(i)(a) [10(2)(i)] to the proportionate annual value of the part used for the purposes of the business, profession or vocation, or

[Section 10(2)(i), proviso]

(b) in a case under section 30(a)(i)(b) [10(2)(ii)], to the part of the premises used for the purposes of the business, profession or vocation.

[Section 10(2)(ii), proviso]

(2) Where only a part of any premises is used for the purposes of the business, profession or vocation, the deduction under section 30, clause (b) [10(2)(ix), earlier portion] shall be such sum as the Income-tax Officer may determine having regard to the part so used.

[Section 10(2)(ix), latter portion]

(3) Where any building, machinery, plant or furniture is not exclusively used for the purposes of the business, profession or vocation, the deductions under sections 30(a)(ii), 30(c), 31(i) and 31(ii), 32(1), clauses (i) (ii) and (iv) and 36 clause (1) [section 10(2) (iv), (v), (vi) or (vii)] shall be restricted to a fair proportional part thereof which the Income-tax Officer may determine having regard to the user of such building, machinery, plant or furniture for the purposes of the business, profession or vocation.

[Section 10(3)]