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Challenge to recovery of alleged tax on perquisites due to supply of furniture at a concessional rate. Analysis: The writ petition challenges the respondent bank's action in recovering tax on perquisites for supplying furniture at a concessional rate. The petitioner argues that there is no legal basis for this recovery, especially after deducting the standard rent of the furniture provided to employees. The petitioner relies on Section 17(2) of the Income-tax Act to assert that the employer can deduct tax on benefits or amenities provided at a concessional rate. The petitioner contends that the concessional rate should be determined based on the rent charged by the employer to all employees, not the market rate. The absence of any concession in the rent charged to employees is emphasized to support the argument against imposing tax on perquisites. The petitioner cites relevant case laws to strengthen the argument, highlighting that the employer's calculation of tax rate is not appropriate and should be determined by the Assessing Officer if necessary. The absence of representation from the respondent is noted, and the court examines the Department's method of calculating the concessional rate based on market value, which is deemed inappropriate. The court reviews decisions from other High Courts, such as Madhya Pradesh, Andhra Pradesh, and Calcutta, which emphasize that the concession should be determined based on the rate charged by the employer to employees. The court refers to past judgments where it was established that if no concession is provided in the rent charged, there is no perquisite under Section 17(2) of the Income-tax Act. The uniformity in rent charged to all employees is crucial in determining the absence of any concession, thereby negating the imposition of tax on perquisites. Based on the principles established in previous judgments, the court concludes that the employer did not provide any concession to the employees regarding the amenities, specifically the furniture supplied at a standard rate. As there is no evidence of the bank offering concessions in rent compared to other employees, the recovery of tax on perquisites is deemed illegal and unjustified. The court orders the respondent bank to cease deducting any amount other than the standard deduction and directs adjustments for previous deductions. The writ petition is upheld, and costs are not awarded to any party. All concerned parties are instructed to comply with the judgment's operative portion.
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