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2022 (3) TMI 295 - AT - Income TaxIncome from house property - Deduction u/s 23(1) - Annual mixed use charges paid by the assessee to Municipal Corporation of Delhi - whether the same is amounts to 'tax' - HELD THAT:- The definition of the 'tax' under the Delhi Municipal Corporation (Property Tax) bye Laws 2004 means and includes only building tax or vacant land tax or both, which does not include the "Annual Mixed Used Charge." In the present case, the collection of 'mixed used charges' is for the purpose of regularizing the usage of residential premises for certain commercial purposes as prescribed under the Delhi Development Authority (Fixation of Charges For Mixed Use And Commercial Use of Premises) Regulations, 2006. The said charges is in the nature of regularization of the usage of the property, which cannot be construed as tax levied by the local authority/Municipal Corporation of Delhi - collection of the annual mixed used charge will not make any difference in the annual let out value of the property, therefore the same is not allowable as per the proviso under section 23(1) of the Income Tax Act, 1961. We are of the view that, the CIT(A) has rightly upheld the disallowance made by the A.O. in respect of the claim made by the assessee for deduction of annual of mixed use charges paid by the assessee to Municipal Corporation of Delhi, in respect of the property of the Assessee.
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