9911796707
TMI Blog1978 (4) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... 1966-67, the relevant previous year having ended on the 31st March, 1966. The facts found and/or admitted in the proceedings are as follows: The assessee is a limited company which owns extensive properties and its income from the rent realised is substantial. In the assessment year in question, the assessee claimed a deduction for Rs. 1,78,784, which represented the tax levied by the Corporation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is of a chart filed by the assessee in this appeal showing the details of the municipal tax liability, which was not challenged by the revenue, the Tribunal found that the liability for municipal taxes in the relevant accounting year was Rs. 1,78,784. The Tribunal held that under s. 23 of the I.T. Act, 1961, tax levied by a local authority was to be allowed whether they were disputed or not or whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same are borne by the owner. Mr. Pal contended that the word "borne" meant something more than payment in the instant case. He submitted that the owner had not even paid the tax levied and, therefore, it could not be said that he had borne such tax, In support of his contention Mr. Pal cited from Burrows Words and Phrases Judicially Defined, 1943 edn., the definition of the word "bear", as quoted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d an entirely different meaning than the word "pay ". It appears to us that the contention of Mr. Pal is without any merit. At the relevant time s. 23 of the I.T. Act, 1961, was as follows: " 23. Annual value how determined.-(1) For the purposes of section 22, the annual value of any property shall be deemed to be the sum for which the property might reasonably be expected to let from year t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on an entirely erroneous basis. Surprisingly, throughout the entire hearing our attention was not drawn to s. 23 as it stood at the relevant time. In any event, we do not accept that where it is laid down that the owner shall "bear" a certain liability, it means that the owner has already paid the same. This is entirely contrary to the plain meaning of the words. For the reasons stated abo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
