TMI Blog2020 (4) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... or 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. - ITA No.4468/Mum./2015 - - - Dated:- 13-3-2020 - SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER Assessee by: Shri Nitesh Joshi a/w Ms. Diti Doshi Revenue by: Shri Akhtar Husain Ansari O R D E R P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the head General and Administrative Expenses . After calling for necessary details and examining them, he found that the amount represents property tax payable to the Municipal Authority through the landlord as per the terms of the leave and license agreement. Further, he observed, during the year under consideration, demand for depositing the same was made by the Municipal Authorities and the assessee has claimed the expenditure on estimate basis. Referring to the provisions of section 43B(a) of the Act, the Assessing Officer observed that tax, duty, cess or fee, if any, claimed by the assessee can be allowed as a deduction only on actual payment. He observed, since the amount in question has not been actually paid during the year, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is seen that as per Para 6.2, the burden of paying the property tax is on the licensor. However, 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 b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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