Sewage tax claimed as business expenses, refund to be taxed under business income

Kyra Investments Vs ACIT (ITAT Mumbai) Payment of Sewage Tax was claimed as business expenditure, refund of same would be liable to be assessed under the head ‘Business Income’. Facts- The assessee is a developer and builder. Undisputedly, assessee has not carried out any business activity during the period relevant to assessment year under appeal. Accordingly, AO disallowed office administrative expenses of Rs. 11,02,886/-. During the relevant year, the assessee paid the Sewage Tax which was later on refunded from MCGM. The assessee claimed the same as ‘business income’. The departmen...