1983 (7) TMI 44

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tion from this court, directing the Tribunal to refer the following three questions : " (1) Whether, on the facts and in the circumstances of the case the Appellate Tribunal was right in law in holding that urban land tax levied on the assessee during the year is not allowable but that only the amount paid during the year is deductible under section 24(1)(vii) in computing income from property?....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rban land tax liability in the year in which the demands have been issued. It is not in dispute that in this case, though the demand was issued in the relevant assessment year, payment has not been made. The assessee seeks deduction of the urban land tax demanded in the assessment year, contending that there is an accrual of liability as soon as the demand is issued and, therefore, it is deductibl....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e, s. 24(1)(vii) deals with two categories, (1) land revenue, and (2) any other tax levied, and the payment is contemplated only in the matter of land revenue and so far as any other tax is concerned, the date of demand should be taken as the basis for deduction. According to the learned counsel for the assessee, the expression " any sums paid on account of " qualifies only land revenue and not ot....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t. We cannot assume that the Legislature intended that payment should be taken as the basis only in respect of land revenue but in respect of any other tax accrual should be taken as the basis. We are of the view that the provision contemplates the payment as the basis both in respect of the land revenue as well as imposition of other taxes. In this view of the matter, we do not see any justificat....