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TMI Blog1991 (8) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... section 256(2) of the Income-tax Act, 1961, reads thus : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in upholding the order of the Commissioner of Income-tax (Appeals) who allowed deduction of municipal tax of Rs. 93,266 pertaining to earlier years on the ground that the demand was raised during the year 1981-82 ? " We are concerned with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax (Appeals) allowed the appeal filed by the assessee holding that the liability for the tax levied arose when the demand notice was issued to the assessee, and, therefore, under the proviso to section 23(1) of the Act, the assessee was entitled to the deduction during the year in which the property tax was demanded, for which purpose a decision of the Madras High Court in CIT v. L. Kuppuswam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es under the relevant municipal law. The Madras High Court, in the aforesaid decision, has pointed out that the property tax is not an automatic levy so as to require the property owner to go and pay tax voluntarily ; therefore, having regard to the language of the proviso to section 23(1) of the Act, it was held therein that the assessee would be eligible for the allowance during the year when th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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