9911796707
TMI Blog2022 (3) TMI 295X X X X Extracts X X X X X X X X Extracts X X X X ..... harges For Mixed Use And Commercial Use of Premises) Regulations, 2006. The said charges is in the nature of regularization of the usage of the property, which cannot be construed as tax levied by the local authority/Municipal Corporation of Delhi - collection of the annual mixed used charge will not make any difference in the annual let out value of the property, therefore the same is not allowable as per the proviso under section 23(1) of the Income Tax Act, 1961. We are of the view that, the CIT(A) has rightly upheld the disallowance made by the A.O. in respect of the claim made by the assessee for deduction of annual of mixed use charges paid by the assessee to Municipal Corporation of Delhi, in respect of the property of the Assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is the joint owner of the property bearing municipal No. 2713-16, Bank Street, Karol Bagh, New Delhi-110088 having 50% share and ownership over the said property. During the year under consideration, assessee had claimed credit of ₹ 4,18,636/- towards taxes paid to Municipal Corporation of Delhi including mixed use charges of ₹ 2,91,270/-. 4. The Assessee was show caused to explain the basis on which mixed use charges had been treated as property tax and also to explain why 50% of amount of ₹ 5,82,540/- paid as mixed use charges not to be disallowed. 5. The assessee replied to the A.O contending that, Assessee is the joint owner of the property having 50% share and ownership. Further contended that 'the taxes co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of rental income as per proviso under section 23 (1) of the Act. Further contended that the Ld. CIT(A) has erred in upholding the disallowance of ₹ 2,91,270/- made by the A.O. 9. Per contra Ld. DR by relying the Orders of the lower authorities, justified the findings, discussions and the conclusion made thereon. 10. We have heard the parties, perused the records gave our thoughtful consideration. The only question arising for consideration is that: whether the annual mixed use charges paid by the assessee to Municipal Corporation of Delhi is amounts to 'tax' and allowable u/s. 23 of IT Act, 1961?. 11. To address the above issue, it is handy to examine the definition of Tax under the Delhi Municipal Corporation (Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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