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2020 (4) TMI 98 - AT - Income TaxDisallowance u/s 43B - Amount been paid to the landlord towards reimbursement of property tax to be paid by the landlord / licensor on the property taken on lease by the assessee - HELD THAT:- On a perusal of the lease and license agreement it is seen that burden of paying the property tax is on the licensor. As per the mutual agreement between the parties, the licensee agreed to reimburse the property tax to the licensor save and except any late fee / charge for any statutory dues. Thus, as could be seen from the aforesaid terms of the agreement, the reimbursement of property tax by the assessee to the licensor is purely contractual and not a statutory liability. Even otherwise also, property tax levied by the Municipal Authority is a charge on the property. Undisputedly, the licensor is the owner of the property, hence, liable to pay the property tax. That being the case, the amount equivalent to the property tax reimbursed to the licensor cannot be treated as rate, tax, fee, cess, etc., as provided u/s 43B(a). Therefore, the disallowance made has to be deleted. - Decided in favour of assessee.
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