1988 (11) TMI 101

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..... the instance of the Revenue is : "Whether, on the facts and in the circumstances of the case and for evaluating under rule 3 of the Income-tax Rules, 1962, the value of rent-free quarters, the term 'salary due to the assessee' would refer to the aggregate salary due from more than one employer even if the rent-free accommodation is provided by only one of the employers ?" The assessee, an i .....

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..... Ltd. only, the Appellate Assistant Commissioner computed the perquisite value of the free residence at Rs. 9,100. Thus, he worked out by taking the amount of rent payable by the employer in respect of the premises occupied by the assessee at Rs. 10,600 (2/3rds of Rs. 15,900) and deducting therefrom a sum of Rs. 1,500 arrived at by holding the value of perquisite in the hands of the assessee would .....

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..... , contended that rule 3 (a) properly construed would mean salary due to the assessee from the employer who provided free accommodation. Fairly admitting that the word "salary" was not qualified in rule 3(a), in any manner, he stated that it was a matter of sheer common sense, that while computing the value of perquisite in respect of free residence provided by an employer, the salary paid by that .....

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..... Provided that-.. . Explanation 1. -'Salary' includes the pay, allowances, bonus or commission payable, monthly or otherwise, but does not include the following, namely : - . . . " It is an admitted position that the value of the perquisite is to be computed with reference to "salary" due to the assessee in respect of the period during which the said accommodation was occupied by him. There i .....

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..... e to the assessee", it will have to be held that the word "salary" means salary received by the assessee-employee from his employer irrespective of the number and irrespective of the fact who provided him the rent-free accommodation. This is the view the Tribunal has taken. The view is certainly a reasonable view as we are concerned in this case with the assessment of the employee and not of the e .....

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