9911796707
TMI Blog1988 (6) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... nt-free furnished accommodation @ 12-1/2% of salary (10% for rent free accommodation plus 2-1/2% for furnishing). 2. The perquisite value of rent free accommodation provided by the assessee's employee. namely, Yadavindra Industries Pvt. Ltd. was offered for assessment @ 10% of the salary plus 2-1/2% for furnishing the same. The ITO however, after stating that the assessee for substantial period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the footing that the same perquisite could have been obtained for a greater amount." 3. The assessee's case before the AAC was that as per terms of employment which was for three years w.e.f. 25th Oct., 1978, a copy of which is given to us, the assessee's headquarter was to be at patiala where he was to be provided free furnished accommodation at the companies premises. The agreement also stipu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessee. The ITO had for this purpose taken into account the fact that the assessee resided at Palace hotel Chail, run by H.P. Tourism development Corporation and that the employer had paid a sum of Rs.40,250 towards the rental charged for this room. He, therefore, applied the provisions of r. 3 (iii)(A) and assessed the value of the perquisite on the basis of the rent paid. An addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and that his stay at Chail was to entitle him to a daily allowance, there would be no confusion in the matter. The stay of the appellant at Chail becomes equivalent to that of a person staying at a Hotel on tour. The company instead of giving him daily allowance provided him with boarding and lodging in a Hotel. The provisions of r. 3 of the IT Rules would not be applicable in such a case. It was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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