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TMI Blog2020 (1) TMI 1722X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming addition of Rs. 18,19,035/- made by the AO under the head "Income from House Property". The appellant craves leave to add one or more ground fo appeal or to alter/ modify the existing ground before or at the time of hearing of appeal. The aforesaid grounds of appeal are without prejudice to each other. 2. The brief facts of the case are that the assessee is having 25% share in property at B-1-I/2, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi which has been given on rent to Max Bupa Health Insurance Company Ltd. While computing the income from this property under the head income from house property, the assessee has deducte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t what is allowed to be deducted is taxes levied by any local authority in respect of the property. The Ld. AR has further contended that the deduction is not confined to property tax. The deduction is available in respect of taxes levied in respect of the property. The taxes levied may be called by whatever name be it house tax or property tax or municipal tax or rates or charges or fees. To support his contention, he has relied upon decision of Coordinate Bench of ITAT, Delhi in case of DCIT v Haldiram Products Private Limited (ITA No. 5158/Del/2012) wherein, it was held that conversion charges were in the nature of municipal taxes. The Ld. AR has also submitted that the issue is no more debatable as the AO has himself allowed the deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnished before him. I further note that Coordinate Bench of ITAT, Delhi in case of DCIT v Haldiram Products Private Limited decided in ITA No. 5158/De1/2012 vide its order dated 08.2.2013 has held that conversion charges were in the nature of municipal taxes. As per provisions of section 23 of the Income Tax Act, 1961, deduction of taxes levied by any local municipality in respect of the let out property is allowable deduction. In the scrutiny assessment made in the case of the assessee for the subsequent assessment year i.e. AY. 2015-16, the AO vide his order dated 08.12.2017 has himself allowed the deduction of similar expenses. Hence, the addition in dispute is not sustainable in the eyes of law. Accordingly, I direct the AO to allow the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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