Mistakes in valuing the perquisite of rent free accommodation. - Income Tax - 1146/CBDT

INSTRUCTION NO. 1146/CBDT Dated : January 27, 1978 Section(s) Referred: 17 Statute: Income - Tax Act, 1961 The Revenue audit have recently pointed out several instances of mistakes in valuing the perquisite of rent free accommodation or of provision of accommodation at concessional rate. One of the mistakes commonly noticed is that periods during which the employee has been away on short leave/annual leave has been left out in calculating the value of the perquisite. Even periods during which the employee has been on official tours have been excluded. This is not correct. If the accommodation has been placed at the disposal of the employee, the employee should be deemed to have enjoyed the perquisite of rent free accommodation, or accommodation at concessional rate, even if he is not in physical occupation of the accommodation. This may be brought to the notice of all the Income-tax Officers. Assessment where valuation of perquisite has been done on a different basis should be re-opened and the demand raised should be collected.