It owned extensive properties and its income from rents realised was substantial.
1,78,784 should be deducted under section 23 1 of the Income tax Act, 1961?
1,78,784 which represented the tax levied by the Corporation of Calcutta as a deductible item while companyputing its income from house property.
From the Judgement and Order dated the 21st April, 1978 of the Calcutta High Court in Income Tax Reference No.
In companyrse of time the dispute regarding the assessment of the liability of the assessee under the Act reached the Income tax Appellate Tribunal.
It appears that the assessee had questioned the extent of liability which had just then been enhanced before the Corporation and on that account had number actually paid the whole of it.
This petition is filed against the said decision of the High Court.
This led to a difference of opinion between the department and the assessee.
Aggrieved by the above decision of the Tribunal, the Department got the following question referred to the High Court under section 256 1 of the Act Whether on the facts and in the circumstances of the case the Tribunal was right in holding that the full taxes levied by the Corporation of Rs.
CIVIL APPELLATE JURISDICTION Special Leave Petition Civil No.
1,78,784 and that the said amount was to be allowed as a deduction irrespective of the fact that the assessee had raised a dispute about the extent of the liability before the Corporation and that the assessee had number paid the whole of it to the Corporation of Calcutta.
The respondent, Dalhousie Properties Limited was an assessee under the Income tax Act, 1961 hereinafter referred to as the Act in the assessment year 1966 67, the relevant previous year being the year ending March 31, 1966.
3786 of 1982.
The Tribunal held that the total liability for municipal taxes which the assessee companyld claim by way of deduction under the proviso to section 23 1 of the Act in respect of the buildings during the accounting year was Rs.
573 of 1971.
In the assessment year in question, the assessee claimed a deduction of Rs.
The Judgment of the Court was delivered by VENKATARAMIAH, J. This Special Leave Petition is filed under Article 136 of the Constitution by the Commissioner of Income tax, West Bengal, Calcutta against the decision of the High Court of Calcutta in Income tax Reference No.
C. Dua and Miss A. Subhashini for the Petitioner.
573 of 1971.
