TMI Blog1979 (1) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 24 of the Income-tax Act, 1961, and the same will, therefore, be eligible for deduction in computing the assessee's income from property ? " For the assessment year 1970-71, the assessee was assessed on a total income of Rs. 3,19,310. He made a claim for allowance of Rs. 8,564 which represented the urban land tax paid by him in the previous year relevant to the assessment year 1970-71. The AAC was of the view that the urban land tax related to previous years prior to the year under consideration and that it could not be allowed as deduction. The assessee took the matter on appeal to the Tribunal. The Tribunal, considering the language of s. 24(vii) of the Act, came to the conclusion that the amount was an allowable deduction. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is with reference to a particular assessment year and that each year is different from any other year. It was also her further submission that the deductions from the annual value as computed could only be such amounts as related to that particular year. Admittedly, in the present case, the sums under consideration represent the urban land tax in arrears. It could not, according to her, be allowed as deductions in the present assessment. What is overlooked in this submission is that s. 24 wherever it contemplates the actual amount paid as deduction uses the appropriate expressions therefor, and wherever it restricts the allowance of the amount relating to the particular year, uses language suitable for that purpose. For instance, where, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee paid the relevant sum though it related to some other earlier years. Having regard to the particular expression used, viz., " paid ", the assessee was rightly held eligible for deduction though the amount related to some other year. It is not as if the assessee can claim deduction on the basis of accrual of his liability in one year or by the discharge of the liability on payment for any other year. Our attention was drawn to the provisions of the Urban Land Tax-Act. Section 5 of the Tamil Nadu Urban Land Tax Act, No. 12 of 1966, is the charging provision and it contemplates levy of such tax and collections therefor every Fasli year commencing from the date of the commencement of the Act. There are provisions relating to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p to the date of his possession. The assessee in that case put forward a contention that the amount of royalty due to him before he took possession could not be brought to tax. The question did not relate to any deduction or allowance under s. 24 or any corresponding provisions of the Act of 1922. We do not consider that the said decision has any scope for application to the facts of the present case before us. The other decision relied on is reported in CIT v. Basant Rai Takhat Singh [1933] 1 ITR 197 (PC). That was a somewhat curious case. The assessee had taken on lease for thirty years a property belonging to the cantonment authority. The assessee was required to build a certain building which became the property of the owner. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
