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2020 (8) TMI 812 - AT - Income TaxIncome from House Property - Payment made to Mumbai Port Trust claimed by assessee u/s 23 - deduction of taxes levied by the local authorities - assessee is the owner of the property in question and the rent received by assessee - HELD THAT:- CIT(A) has observed that, the term local authority cannot be rigidly interpreted to mean only a local government as has been interpreted by the AO in this case. As such the Mumbai Port Trust has to be treated as a local authority u/s 23 of the Act. It is specifically held that the payment made to the DPT is nothing to akin to the service tax levied by a local authority. CIT(A) has considered the decision of M/s Dwarkadas Marfatia and Sons Vs. Board of Trustees of the Port of Bombay [1989 (4) TMI 315 - SUPREME COURT] in which it is specifically held that the ground rent paid to the BPT in the nature of service tax levied by local authority and therefore eligible for deduction u/s 23 r.w.s. 27(vi) of the Act. Moreover, the issue has been dealt by the revenue for previous year also relevant to the A.Y. 2010-11. The claim of the assessee was allowed specifically in the circumstances when the assessment order was passed u/s 143(3) of the Act. CIT(A) has examined number of aspects of the cases and by going through all the facts and circumstances, we are of the view that the CIT(A) has decided the matter of controversy judiciously and correctly which is not liable to be interfere with at this appellate stage. Decided in favour of the assessee against the revenue.
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