TMI Blog2005 (2) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure either under section 30(b) or under section 37(1) of the Income-tax Act, 1961. - - - - - Dated:- 10-2-2005 - Judge(s) : K. S. RADHAKRISHNAN., C. N. RAMACHANDRAN NAIR. JUDGMENT The judgment of the court was delivered by K.S. Radhakrishnan J.- The following question of law has been referred to this court on an application made under section 256(1) of the Income-tax Act, 1961, at the instance of the Commissioner of Income-tax. "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that the building tax paid Rs. 1,98,609 under the Kerala Building Tax Act is allowable business expenditure under section 30(b) of the Income-tax Act, 1961?" The applicant claimed a sum of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esaid two decisions and hence the decision of this court requires reconsideration and submitted that the matter may be referred to a larger Bench. Senior standing counsel for the Income-tax Department, Sri P.K.R. Menon, on the other hand contended that the decision in Indian Aluminium Co.'s case [1972] 84 ITR 735 (SC), is not applicable to the facts of this case and hence no reference is warranted. We have examined the decision of the apex court in Indian Aluminium Co.'s case [1972] 84 ITR 735 (SC). The question that arose before the apex court in that case was whether payment of wealth-tax is incidental to the carrying on of the assessee's trade and hence such payment is a permissible deduction under section 10(2)(xv) of the Indian Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... repairs to the premises; (b) any sums paid on account of land revenue, local rates or municipal taxes; (c) the amount of any premium paid in respect-of insurance against risk of damage or destruction of the premises." Section 30(b) relied on by the assessee specifically refers to payment of municipal tax. Municipal tax is a recurring liability whereas building tax under the Kerala Building Tax Act, 1975, is a one time liability, which is entirely different. Even if the assessee does not take up any business in the building he has to necessarily pay the building tax on completion of construction of the building. Municipal tax is specifically made an allowable deduction under section 30 (b) of the Act while there is no provision for all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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