1999 (3) TMI 65

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..... wance received by the assessee from his employer to each of the accounting years relevant to the assessment years 1980-81 and 1981-82 was not liable to be included in the total income of the assessee for those two assessment years under section 10(13A) of the Income-tax Act, 1961, even though the assessee resided in his own house in those two years ?" The assessee is an individual. The assessment years involved in this reference are 1980-81 and 1981-82, the relevant accounting years being the years ended on March 31, 1980, and March 31, 1981, respectively. In each of these two accounting years, the assessee received a sum of Rs. 4,800 as house rent allowance from his employer. The assessee claimed that the above amount was not liable to be .....

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..... "10. Incomes not included in total income.---In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included --- . . . (13A) any special allowance specifically granted to an assessee by his employer to meet expenditure actually incurred on payment of rent by whatever name called) in respect of residential accommodation occupied by the assessee, to such extent (not exceeding four hundred rupees per month) as may be prescribed having regard to the area or place in which such accommodation is situate and other relevant considerations." There was a divergence of opinion in regard to the interpretation of the above clause (13A) of section 10 of the Act. In CIT v. S. .....

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..... doubts, declares in clear terms, that nothing contained in clause (13A) shall apply in a case where the residential accommodation occupied by the assessee is owned by him or the assessee has not actually incurred any expenditure on payment of rent in respect of the residential accommodation occupied by him. In view of the above amendment, even the decisions of the Punjab and Haryana High Court cited above are not applicable to assessments for the assessment year 1976-77 and onwards. In the instant case, the controversy pertains to the assessment years 1980-81 and 1981-82. The admitted position is that the accommodation occupied by the assessee was owned by him and he did not incur any expenditure on payment of rent in respect thereof. In t .....

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