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TMI Blog2016 (6) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... aring income of Rs. 1,90,66,894/-. The case was taken up for scrutiny and the assessment was concluded under section 143(3) of the Income Tax Act, 1961 (in short 'the Act')Rs. vide order dated 28.02.2013, wherein the income of the assessee was determined at Rs. 1,93,06,890/-. This was in view of the addition of Rs. 2,40,000/- made by the AO on the grounds that the notional interest on deposit of Rs. 20,00,000/- given by his employer to the landlord for accommodation provided by the employer to the assessee is to be considered as perquisite. On appeal, the CIT(A)-28 dismissed the assessee's appeal for A.Y. 2010-11 vide order dated 19.08.2014, holding that the action of the AO in considering 12% of the amount of deposit of Rs. 2,40,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me to the assessee's income. The learned A.R. contended that this addition is not sustainable in law since this very issue, on similar facts, has been considered and held in favour of the assessee by the Hon'ble Bombay High Court in the case of CIT vs. Shankar Krishnan in ITA NO. 356 of 2010 dated 06.09.2011 wherein the Hon'ble High Court has held that notional interest on deposit given by employer for securing rented premises for use of employee should not be treated as perquisite value. The learned A.R. prayed that since this issue is covered in favour of the assessee by the decision of the Hon'ble Bombay High Court (supra) therefore the addition of Rs. 2,40,000/- on account of notional interest on deposit of Rs. 20,00,000/- f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akes residential premises on rent by giving security deposit for the benefit of employees, whether the notional interest on such security deposit is liable to be included in the perquisite value of the accommodation given to the assessee employee is the question raised in this appeal?" At para 9 thereof the Hon'ble High Court has held that: - "on a plain reading of Rule 3, it is seen that the perquisite value of the residential accommodation provided by the employer shall be the actual amount of lease rent paid or payable by the employer and not on notional basis. Therefore, in our opinion, the contention of the Revenue that the notional interest or deposits paid by the employer to the landlord has to be taken into consideration whil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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