https://www.taxtmi.com/caselaws?id=24976 Under the unamended proviso to section 23(1) of the Income-tax Act, municipal tax deduction depends on the tax being levied in respect of the property during the relevant accounting year, because the controlling factor is the liability arising from levy rather than the date of first demand or actual payment. The later amendment was treated as declaratory of that existing position, confirming that deduction is linked to the accrual of municipal tax liability in the year concerned. Accordingly, municipal taxes levied during the relevant accounting year are deductible in computing income from property. en-us Tue, 29 Dec 1987 00:00:00 +0530 Sat, 23 Jan 2010 14:31:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24976 Under the unamended proviso to section 23(1) of the Income-tax Act, municipal tax deduction depends on the tax being levied in respect of the property during the relevant accounting year, because the controlling factor is the liability arising from levy rather than the date of first demand or actual payment. The later amendment was treated as declaratory of that existing position, confirming that deduction is linked to the accrual of municipal tax liability in the year concerned. Accordingly, municipal taxes levied during the relevant accounting year are deductible in computing income from property. Case-Laws Income Tax Tue, 29 Dec 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24976