https://www.taxtmi.com/caselaws?id=35926 Under the proviso to section 23(1), municipal property tax levied by a local authority is deductible in computing annual letting value to the extent borne by the owner. The decisive expression is "levied", and the statutory scheme of section 24 indicates that Parliament used different language where actual payment or year-specific linkage was intended. Applying that distinction, tax actually levied during the relevant previous year remained deductible even if the demand related to earlier years. The levy under the Madras City Municipal Act was treated as giving rise to liability on levy rather than by a purely automatic charge, so the deduction was allowable. en-us Wed, 29 Jul 1981 00:00:00 +0530 Thu, 18 Mar 2010 10:29:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35926 Under the proviso to section 23(1), municipal property tax levied by a local authority is deductible in computing annual letting value to the extent borne by the owner. The decisive expression is "levied", and the statutory scheme of section 24 indicates that Parliament used different language where actual payment or year-specific linkage was intended. Applying that distinction, tax actually levied during the relevant previous year remained deductible even if the demand related to earlier years. The levy under the Madras City Municipal Act was treated as giving rise to liability on levy rather than by a purely automatic charge, so the deduction was allowable. Case-Laws Income Tax Wed, 29 Jul 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35926