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TMI Blog1986 (6) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... subjected to tax. The assessee in its building had sunk a tubewell to meet with the demand of the tenants for water. The assessee claimed depreciation on the tubewell and the same has been denied by the ITO as well as by the Commissioner (Appeals). 3. Shri Chopra, the assessee's counsel, urged that the assessee was realizing from the tenants rent as well as service charges. The tubewell was for the facility of the tenants and, therefore, the assessee should be allowed depreciation. Shri Kundu, the departmental representative, on the other hand, referred to section 32 of the Income-tax Act, 1961 ('the Act') and urged that depreciation is only available to the assessees who are deriving income either from business or from profession. Accor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee claimed that interest on delayed payment of tax is nothing else but tax and the tax should be deducted while computing the annual value of the property under section 23(1) of the Act. The claim of the assessee has been negatived by the ITO and the Commissioner (Appeals). 6. The assessee's counsel urged that the interest paid by the assessee is nothing else but the tax levied by the Calcutta Municipal Corporation under the Calcutta Municipal Act, 1951. Therefore, the tax levied by the Calcutta Municipal Corporation should be deducted while computing the annual value of the property. The departmental representative, on the other hand, urged that the interest paid by the assessee on delayed payment of tax cannot equated with tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent to the Calcutta Municipal Corporation to which the payment was not made within the time whereas the tax is levied on the property under Chapter XI under section 165 to 207 of the Calcutta Municipal Act, being situated within the limit of Municipal Corporation with civic amenities. Therefore, there is a vast difference between the tax levied by the Corporation under Chapter XI of the Calcutta Municipal Act and the interest recovered under section 236(3) of the Calcutta Municipal, Act. The interest so realisable by the Calcutta Municipal Corporation on the bill remain in unpaid does not in any way form the part of the tax which is levied by the Calcutta Municipal Corporation under Chapter XI of the Calcutta Municipal Act. Therefore, the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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