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TMI Blog2022 (8) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... 022 - Shri Kul Bharat, Judicial Member For the Appellant : None For the Respondent : Sh. Om Prakash, Sr. DR ORDER PER KUL BHARAT, JM: This appeal, by the assessee, is directed against the order of the learned Commissioner of Income-tax (Appeals)-1, Noida, dated 25.09.2017, pertaining to the assessment year 2014-15. The assessee has raised following grounds of appeal: 1. The impugned Order is against bad in law, passed against the natural rule of justice, without giving proper opportunity of being heard and is liable to be quashed. 2. The Ld. AO have erred in law and on facts in making addition of Rs.25,41,859 under the head salaries without considering the facts of the appellant's case. 3. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asis of the material available on record. 4. Learned Sr. DR submitted that there is no infirmity into the order of the learned CIT(Appeals). The Assessing Officer has rightly assessed the income at Rs. 25,41,860/-. 5. I have heard the learned Sr. DR and perused the material available on record. The only grievance of the assessee in this appeal is regarding declining the claim of deduction u/s 10 of the Act regarding house rent paid by him of Rs. 4,04,060/-. It is submitted by the assessee in the application filed before this Tribunal that the precedents of the Division Bench of this Tribunal and the High Courts have not been considered. The Tribunal in ITA no. 715/Ahd/2013 in the case of Bajrang Prasad Vs. ACIT 60 SOT 66 has held as u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed self occupied and claimed the relief u/s.24 of the Act. Under these circumstances, we have to only examine whether the assessee is entitled for exemption u/s.10(13A) or not. For the sake of clarity, section 1o(13A) is reproduced hereinbelow:- Section l0(13A):- (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 as may be prescribed having regard to the area or place in which such accommodation is situate and other relevant considerations. Explanation.-For the removal of doubts, it is hereby declared that nothing contained in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the given dates but the receipts date and amount of Rs.1,65,000/- not reflecting as transfer. Therefore, in our considered opinion, the assessee has fulfilled twin requirements of the provision, i.e. occupation of the house and the payment of rent. Under these circumstances, the assessee is entitled for exemption u/s.10(13A) of the Act. Since we have observed that the ld.CIT(A) s chose not to make enhancement and disallow the relief u/s.24 of the Act, therefore we cannot comment upon this aspect of the matter. In this view of the matter, we delete the addition and direct the AO to allow exemption u/s.10(13A) of the Act to the assessee. This ground is also allowed as indicated above. 6. Further, the Hon ble Punjab Haryana High Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions as imposed under the Act and the Rules, the compensation paid to the assessee by his employer, cannot be subjected to tax. The Tribunal accepted the interpretation of the relevant provisions of the Act and we do not find any reason to take a different view than the one taken by the Tribunal. 4. The Bench further recorded a finding in the following terms (p. 506) : The matter can be looked at from another angle also. The provisions of Section 10(13A) of the Act and Rule 2A of the Rules have to be given effect to. The Rules and the section are not in conflict with each other. Rather, the Rules are supplementary to the section. Even if the assessee's case is covered by the Rules, the assessee will be entitled to exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rwise in respect of residential accommodation occupied by him and if he is compensated by his employer in that case, subject to the limitations imposed under the Act and the Rules, the allowance paid to him by the employer, shall be exempt from income-tax. An assessee, who occupies his own house, has disentitled himself from the rent which he would have been entitled to if he had not occupied the same himself, and in that sense he suffered expenditure in that regard. In that sense, an assessee occupying his own house, if compensated by the employer by payment of a special allowance (HRA), subject to the restrictions as imposed under the Act and the Rules, the compensation paid to the assessee by his employer, cannot be subjected to tax. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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