1983 (1) TMI 141

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..... d building and the claim is that the Municipal Corporation had levied municipal tax in respect of the said flat in the year ending31st March, 1979and, therefore, the assessee claimed the sum of Rs. 20,648 for the entire period of 3-1/4 years as a deduction in this year. The ITO held that the assessee could claim only municipal taxes for one year as a deduction. The learned CIT (A) has confirmed th .....

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..... on envisaged by the proviso. Their Lordships laid stress on the word "levied", which was held to be significant. The High Court further held that the property tax is not automatic so as to require the property holder to pay the tax voluntarily. Therefore, the liability to pay tax arises at the time of the actual levy and the deduction under the proviso to s. 23(1) is justified only in the year in .....

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