9911796707
TMI Blog1979 (1) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income-tax Act, 1961, hereinafter referred to as "the Act", the following question has been referred : " Whether, on the facts and in the circumstances of the case, Rs. 33,394 being the urban land tax for Faslis 1373 to 1376, both inclusive, paid by the assessee during the relevant previous year in respect of the urban land on which it was carrying on the business is to be deducted in the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ach on 29th June, 1970, and 16th November, 1970, respectively, both payments falling during relevant previous year. The first of the payments was in respect of the Faslis 1373 and 1374 and the second in respect of Faslis 1375 and 1376. The assessee claimed the total sum of Rs. 33,394 as deduction allowable in the year under consideration. The ITO held that there was no provision for allowing as de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The nature of the tax and the date on which it accrues have been the subject of notice in our decision in T.C. No. 102 of 1975 (CIT v. M. CT. Muthiah) dated January 17, 1979-[1979] 118 ITR 104. After briefly considering the provisions of that Act we pointed out in our judgment as under (p. 107): " Section 15 provides that in respect of the urban land tax payable for every Fasli year or part ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be no liability as such. The provision, if any, would only be in respect of a contingent liability. If no notice was issued then there would be no liability as such. Hence, in the light of this decision, the question referred has to be answered in the affirmative and in favour of the assessee. The assessee will be entitled to its costs. Counsel's fee Rs. 500. X X X X Extracts X X X X X X X X Extracts X X X X
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