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2014 (8) TMI 237 - ITAT MUMBAIDeduction on municipal taxes – Income declared as income from other sources – Held that:- The assessee being the defacto owner of the building and enjoying the fruit thereon has to incur the municipal taxes on the building as agreed upon - for the new building brought into existence, higher municipal taxes could not have been levied - while the levy of municipal taxes arises on account of a statutory obligation, the payment of the municipal taxes by the assessee arises out of contractual obligation between the assessee and the land owner, irrespective of the fact that in whose name the demand has been raised by the municipal authorities - assessee is entitled for deduction of the municipal taxes paid, the AO is directed to assess the receipt as income of the assessee under the head ‘income from other sources’ and the claim of expenditure/deduction of actual payment made by the assessee in respect of the municipal taxes is allowed – Decided in favor of assessee.
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