2024 (11) TMI 254 - SCH - Income Tax

Computing value of perquisites u/s 17(2) - assessee is a Trust constituted under Charitable Endowment Act, 1890 - value of residential accommodation provided by the Central Government or any State Government to the employees either holding office or post in connection with affairs of the Union or of such State or serving with any body or Undertaking under the control of such Government on such deputation . As per HC 2021 (7) TMI 1053 - KARNATAKA HIGH COURT for the purposes of Rule 3, the requirement is that the accommodation should be provided by the Central Government or State Government to the employees either holding office or post in connection with affairs of Union or of State or serving with any body or undertaking under the control of such government from deputation. The aforesaid expression is unambiguous and unclear and therefore, its meaning cannot be expanded to include any body, undertaking under the control of Central Government. Merely because assessee is a body or undertaking owned or controlled by the Central Government, it cannot be elevated to the status of Central Government. Thus, the assessee cannot claim that valuation of perquisites in respect of residential accommodation should be computed as in case of an accommodation provided by the Central Government. Therefore, Sl.No.1 of Table 1 of Rule 3 of the Rules does not apply to the assessee. HELD THAT - Having heard learned senior counsel for the petitioner(s) and learned counsel for the respondent(s) at length, we do not find any reason to interfere in the impugned judgment and orders(s). Special Leave Petitions are hence dismissed.

Summary

The Supreme Court, consisting of HON'BLE MRS. JUSTICE B. V. NAGARATHNA and HON'BLE MR. JUSTICE PANKAJ MITHAL, dismissed the Special Leave Petitions after hearing both the petitioner's and respondent's counsel, finding no reason to interfere with the impugned judgment and orders. Pending applications were disposed of.