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TMI Blog1943 (8) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... Bombay. The Income-tax authorities rejected his contention and the Appellate Tribunal, Calcutta Bench, held that they were right. Thereupon the assessee asked the Tribunal to state a case to this Court under Section 66 (1). The Tribunal acceded to this request and the question referred is in these words:- "Whether the sum of ₹ 10,880 (or any portion of it) being Urban Immovable Property Tax paid under the Bombay Finance Act is not an admissible deduction under Section 9 (1) (iv) or 9 (1) (v) in computing the income from property under Section 9 of the Income-tax Act ?" Sub-section (1) of Section 9 says that the tax shall be payable by an assessee under the head "Income from property " in respect of the bona fide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 22 or as a penalty imposed under Section 24-A for failure to pay such tax, in respect of any building or land, shall, subject to the prior payment of the land revenue, if any, due to the Provincial Government thereon, be a first charge upon the said building or land and upon the movable property, if any, found within or upon such building or land and belonging to the person liable for such tax or penalty." In the first place the assessee says that as a charge is created by this section he is entitled to the deduction under clause (iv) of subsection (1) of Section 9 of the Income-tax Act. To accept this contention would mean that municipal taxes are deductible under this clause because the amounts due in respect of municipal taxes l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commuted for a money payment which in some cases is feed permanently and in others is liable to revision by periodical settlements. Sometimes the Government revenue is spoken of as quit-rent, sometimes as a land tax. But, however it may be described and however it may have been assessed it is the first and paramount charge upon the land, and if default is made in payment the estate is sold in a summary way." The Legislature of the Bombay Presidency clearly does not regard the urban immovable property tax as confuting "land revenue." This is shown by Section 24-B which makes the charge subject to the prior payment of the land revenue, if any, due to the Government. Mr Subbaraya Ayyar has contended however, that we should igno ..... X X X X Extracts X X X X X X X X Extracts X X X X
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