1998 (7) TMI 5

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..... nue is as follows: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the expenditure incurred by the assessee-company by way of property tax, urban land tax and towards maintenance of the properties owned by the company and given as residential accommodation to its directors should not be considered for the purpose of disallowanc .....

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..... T [1999] 239 ITR 305), that the property tax and the urban land tax incurred by the assessee should not be included for the purpose of disallowance under section 40(c) of the Income-tax Act, 1961, and maintenance alone can be included for the purpose of disallowance. In the decision reported in C. W. S. (India) Ltd. v. CIT [1994] 208 ITR 649 (SC), while interpreting section 40, the Supreme Court .....

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..... installed it in the said house, the whole expenditure would have been subject to the ceiling in section 40(c) (iii) ..." Following the abovesaid decision of the apex court and this court we hold that the expenditure incurred by the assessee-company by way of property tax and urban land tax should not be considered for the purpose of disallowance under section 40(c) of the Income-tax Act, 1961, a .....

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