https://www.taxtmi.com/caselaws?id=7263 A municipal tax payment attributable to ownership of property was held not deductible under section 12(2) of the Indian Income-tax Act, 1922, because the expenditure was not incurred solely for earning the relevant income. The court held that the fact that the building was offered as security did not convert an ownership liability into a commission-earning expense, and rejected any attempt to shift the same outgoing between different heads of income to secure a further deduction. It also held that the reference question properly arose out of the Tribunal's order, since the deductibility issue had been in controversy before the Tribunal. The claimed deduction was disallowed and the reference answered against the assessee. en-us Thu, 22 Feb 1968 00:00:00 +0530 Mon, 16 Feb 2009 12:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7263 A municipal tax payment attributable to ownership of property was held not deductible under section 12(2) of the Indian Income-tax Act, 1922, because the expenditure was not incurred solely for earning the relevant income. The court held that the fact that the building was offered as security did not convert an ownership liability into a commission-earning expense, and rejected any attempt to shift the same outgoing between different heads of income to secure a further deduction. It also held that the reference question properly arose out of the Tribunal's order, since the deductibility issue had been in controversy before the Tribunal. The claimed deduction was disallowed and the reference answered against the assessee. Case-Laws Income Tax Thu, 22 Feb 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7263