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TMI Blog1984 (6) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of rent in respect of his residential accommodation. Dissatisfied with the order passed by the IAC(A) the assessee appealed before the CIT(A) and contended that in spite of the fact that he resided in his self-owned property and did not actually incur any expenditure by way of rent on it, he was entitled to deduction in accordance with the law allied down by the Hon ble Punjab Haryana High Court in the case of CIT vs. Justice S. C. Mittal (1980) 15 CTR (P H) 294 : (1980) 121 ITR 503 (P H). He also relied upon the decision of the Hon ble Supreme Court of India reported in Bhagwan Das Jain vs. Union of India Ors. (1981) 21 CTR (SC) 339 : (1981) 128 ITR 315 (SC). The CIT(A) agreed with the representation made by assessee and held relyi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 ITR 503 (P H) and on a single member decision of the ITAT Delhi in ITA No. 2455/Del/82 dt.29th Sept., 1982. 5. We have carefully considered the submission made on the two sides. We have also very carefully gone through the decision of the Hon ble Punjab Haryana High Court in the case of Mr. Justice S.C. Mittal (1980) 15 CTR (P H) 294 : (1980) 121 ITR 503 (P H) and other decisions of the same Hon ble High Court which were subsequently delivered in which the decision given in the case of Mr. Justice S. C. Mittal had been followed. We have also gone through the decision of the Hon ble Supreme Court of India reported (1981) 21 CTR (SC) 339 : (1981) 128 ITR 315 (SC) which had been relied upon by the respondent in the Court of proceedings b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Calcutta, Coimbatore, Delhi, Faridabad, Gwalior, (Lashkar), Hyderabad, Indore, Jabalpur, Kanpur, Lucknow, Ludhiana City, Madurai, Nagpur, Patna, Poona, Srinagar, Surat, Vadodara (Baroda) or Varanasi (Banaras) or the urban agglomeration of each of such places: (ii) where such accommodation is situate atBombay,Calicut,Cochin,Ghaziabad,Hubli-Dharwar, Madras Sholapur,TrivandrumorVishakhapatnam. One-fifth of the amount of salary due to the assessee in respect of the relevant period; and (iii) where such residential accommodation is situate at any other place, one-tenth of the amount of salary due to the assessee in respect of the relevant period; or (d) a sum calculated at the rate of Rs. 400 per month in respect of the relevant period, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remaining in the hands of granted was accordingly held to be not exempt under the provision of s. 4(3)(vi). In accordance with the law laid down by the Hon ble Supreme Court of India in the aforementioned decision it appears to us that in order to be exempt within the provision of s. 10(13A), the House Rent Allowance had to be actually incurred on payment of rent hired for residence. Since in the present case no rent had been actually paid and since no accommodation had actually been hired for residence as the assessee was residing in his own house, the question of granting exemption under the provision of s. 10(13A) did not arise. We are also at this stage reminded of another decision of the Hon ble Supreme Court of India in Indian Molasse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption available in s. 10(13A). 7. In the above view of matter we have not been able to follow the decision of the Punjab Haryana High Court reported in (1980) 15 CTR (P H) 294 : (1980) 121 ITR 503 (P H). Where their Lordships had held that the main object of enacting the prevision of s. 10(13A) is that in a case where an assessee actually has monetary loss by way of expenditure or otherwise he would be entitled to exemption under s. 10(13A). With grate deference to the aforesaid decision it appears to us that the provisions of s. 10(13A) grant an exemption were an assessee actually incurs expenditure and not in any "otherwise" situation as held by the Hon ble High Court. We have gone through the Commentary of Income-tax Law by ld. a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting it out but would also embrace within itself an eventuality of saving by using the property as self-residence. According to us that law thus laid down by Hon ble Supreme Court of India, in fact supports the view that we have taken. When an owner of a house property occupies it for its self residence, it can be said that he is saving by using the property himself. But it could not mean that an assessee who is in receipt of house rent allowance but who does not incur any expenditure by way of rent as he resides in his own house is actually incurring any expenditure by way of rent. 9. In conclusion we would accept the view of the assessing authority that the HRA of Rs. 4,800 received by the assessee who was not actually incurring any exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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