9911796707
TMI Blog1986 (10) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... oint involved in these appeals is about the perquisite value of the rent free accommodation in terms of r. 3(a) of the IT Rules, 1962. The assessee is an employee of M/s CEAT Tyres of India Ltd. He was provided with a rent free accommodation situated at Malabar Hill, Bombay, known as II Plaza, The flat in question is 2840 sq.ft. dimension and was purchased by the employer company in 1970 for a tot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... air rent is to be the standard rent and relied in this connection on the Kerala High Court decision in the case of G.J. George vs. CIT (1973) 92 ITR 137 (Ker) and the Supreme Court in the case of Diwan Daulatrai Kapoor vs. New Delhi Municipal Committee Anr. (1980) 122 ITR 700 (SC) and also on the decision of the Supreme Court in the case of Sheila Kaushik vs. CIT (1981) 131 ITR 433 (SC): (1981) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue which would represent the rent, which the accommodation would achieve in a similar locality. 5. The assessee is aggrieved by the order of the Commissioner(A) and has come in appeal before us. We have heard both the representatives of the assessee as well as the Department. The cases before the Supreme Court were under s. 23 of the IT Act. Under s. 23 annual value of a property is deemed to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd rent would represent the rental value for evaluating the perquisite in respect of rent-free accommodation. In view of the decision of the Supreme Court rendered while interpreting similar language and the Tribunal decision in the case of J.P.N Vakil, we do not find any justification for the Commissioner (A) to take a contrary view by relying upon the Delhi High Court decision. The Supreme Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ployee than from a tenant. The same yardstick, in our opinion, should apply in both cases. If to expect a higher rent from a tenant is unreasonable, as held by the Supreme Court, the same should be held unreasonable in those cases where the accommodation is provided by the employer to the employee on licence basis. We, therefore, set aside the orders of the authorities below. The matter is restore ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
