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section 24(1)(vii) of the income-tax act, 1961-deductions from income from house property-whether payment of arrears of urban land tax relating to earlier years was eligible for deduction in computing income from house property-held, yes Facts For the assessment year 1970-71, the assessee claimed an allowance of Rs. 8,564 which re-presented the urban land tax paid by him prior to the year relevant to the assessment year 1970-71. The AAC took the view that since the tax related to the previous year prior to the year under consideration, it could not be allowed as deduction. Considering the language of clause (vii) of sub-section (1) of section 24, the Tribunal, however, came to the conclusion that the amount was allowable as deduction. On reference, the revenue contended that the assessment of income under the Act was with reference to a particular assessment year and each year was different from any other year and that the deduction from the annual value as contemplated in the said clause could only be such amounts as related to that particular year. It was, therefore, submitted that since the amount represented the urban land tax in arrears, it could not be allowed as deduction in the present assessment. Held Suitable language was used in different clauses of the section wherever it was contemplated to restrict the allowance of the amount relating to the particular year. The amount of annual charge deductible under clause (iv), the amount of ground rent deductible under clause (v) and the interest payable on borrowed capital deductible under clause (vi) of sub-section (1) of section 24 should be relatable to a particular year. However, having regard to the expression "paid" used in clause (vii) of the said sub-section, the assessee was eligible for deduction, though the amount related to some other prior year. Case review CIT v. Maharajadhiraj Sir Kameshwar Singh of Darbhanga [1933] 1 ITR 94 (PC) and CIT v. Basant Rai Takhat Singh[1933] 1 ITR 197 (PC) distinguished. Cases referred to CIT v. Basant Rai Takhat Singh [1933] 1 ITR 197 (PC) and CIT v. Kameshwar Singh (Maharajadhiraja) [1933] 1 ITR 94 (PC). JUDGMENT Sethuraman, J.-The Appellate Tribunal has referred…

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