COMMISSIONER OF INCOME TAX Vs. WOODLANDS

JUDGEMENT

(1.) AT the instance of the Department, under section 256(1) of the Income-tax Act, 1961, the Department referred the following question for the opinion of this court :

(2.) THE assessee carried on hotel business and it claimed deduction of urban land tax paid by it of Rs. 73,117 relating to the three assessment years, out of which the Income-tax Officer allowed only one-third as relating to the assessment year 1978-79 and disallowed the balance relating to the earlier years. On appeal, the Appellate Assistant Commissioner accepted the assessee's plea for deduction of the entire amount following the decision of this court in the case of CIT v. M. Ct. Muthiah [1979] 118 ITR 104. On further appeal, the Appellate Tribunal upheld the order passes by the Appellate Assistant Commissioner.