Section 43B: Municipal Tax Arrears allowable in the year of payment

ITO Vs. Sudhir Satnaniwala (ITAT Kolkata) It is observed that the deduction claimed by the assessee on payment of municipal tax arrears was disallowed by the A.O. on the ground that the said expenditure pertained to the earlier years and the assessee was not liable to pay the same. Since the corresponding rental income received by the assessee from sub-letting of the property was held by the A.O. as chargeable to tax in the hands of the assessee under the head ‘income from other sources’, he held that the expenditure incurred by the assessee on payment of municipal tax arrears was not whol...