| |
| The Tax Publishers2020 TaxPub(DT) 3452 (Mum-Trib) INCOME TAX ACT, 1961
Section 23
Where assessee made payment made to Mumbai Port Trust and claimed same as deduction under section 23, AO was not justified in disallowing same, because term local authority cannot be rigidly interpreted to mean only a local government as interpreted by AO in case of assessee and therefore, Mumbai Port Trust was to be treated as a local authority under section 23.
|
Income from house property - Payment made to Mumbai Port Trust - Whether Mumbai Port Trust is to be treated as a local authority under section 23 -
Revenue challenged order of CIT(A), whereby he deleted addition made towards payment made to Mumbai Port Trust claimed by assessee under section 23. Held: CIT(A) observed that term 'local authority' cannot be rigidly interpreted to mean only a local government as has been interpreted by AO in case of assessee. As such Mumbai Port Trust was to be treated as a local authority under section 23. In Dwarkadas Marfatia and Sons v. Board of Trustees of the Port of Bombay, it was specifically held that the ground rent paid to Bombay port trust was in the nature of service tax levied by local authority and therefore eligible for deduction under section 23 read with section 27(vi). Moreover, issue was dealt by revenue for previous year also relevant to assessment year 2010-11. The claim of the assessee was allowed specifically in the circumstances when the assessment order was passed under section 143(3).
Followed:Dwarkadas Marfatia & Sons v. Board of Trustees of the Port of Bombay (1989) 3 SCC 293 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
INCOME TAX ACT, 1961
Rule 34(5)
 SUBSCRIBE FOR FULL CONTENT
|