Case Law Details
ACIT Vs Camoron Finance & Investments (ITAT Mumbai)
Payment of municipal taxes are directly related to letting out of the property, therefore, the same could not be allowed as a deduction under Sec. 57(iii) for the purpose of earning of amenities charges by the assessee.
FULL TEXT OF THE ITAT JUDGMENT
The present appeal filed by the revenue is directed against the order passed by the CIT(A)-37, Mumbai, dated 28.06.2017, which in turn arises from the order passed by the A.O under Sec. 143(3) r.w.s. 147 of the Income Tax Act, 1961 (for short „Act‟), dated 16.02.2016 for A.Y. 2008-09. The revenue assailing the order of the CIT(A) has raised before us the following grounds of appeal:
“1. On the facts and in the circumstances of the case and in law, the learned Commissioner of Income-tax (Appeals) has erred in allowing municipal taxes against “Income from Other Sources” u/s 57(iii) instead of “Income from house Property” ignoring that the municipal taxes are paid in respect of the house property and thus are directly related to the House property on which income is earned.
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