Madras H.C : The deduction of urban land tax relating to the earlier previous years is allowable as a deduction in computing the income from property for the year in which the tax paid on the basis of the provision under s. 24(1)(vii)

High Court Of Madras

CIT vs. M. Ranjitmal Chordia

Section 261

R. Jayasimha Babu & N.V. Balasubramanian, JJ.

SCP No. 55 of 1997

27th February, 2001

Counsel Appeared

O. Anand Ram, for the Revenue : P.P.S. Janarthana Raja, for the Assessee

JUDGMENT

N.V. BALASUBRAMANIAN, J. :

The petition is filed to grant a certificate for leave to appeal to the Supreme Court against the judgment in T.C. No. 833 of 1984 dt. 3rd July, 1996, under s. 261 of the IT Act, 1961. It was found on the facts and circumstances of the case that the actual rent received by the tenant as nearer to the fair rent than the municipal valuation as contemplated under the provisions of the Tamil Nadu Buildings (Lease and Rent Control) Act and the City Municipal Act and following the earlier decision of the Supreme Court in Mrs. Sheila Kaushish vs. CIT (1981) 131 ITR 435 (SC), it was held that the actual rent would represent the annual letting value of the house property in question. The decision was rendered on the facts of the case and we do not find any good reason to grant the certificate for leave to appeal to the Supreme Court.

2. So far as the second question is concerned, this Court held that the deduction of urban land tax relating to the earlier previous years is allowable as a deduction in computing the income from property for the year in which the tax paid on the basis of the provision under s. 24(1)(vii) of the IT Act and it was not pointed out that any contrary view was taken. We do not find any justifiable reason to grant the certificate for leave to Supreme Court on the second question also. Accordingly, the petitioner is dismissed. The assessee is entitled to costs of Rs. 500.

[Citation : 250 ITR 530]

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