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2012 (7) TMI 494 - AT - Income TaxDis allow the claim of exemption of HRA u/s 10(13A) - the assessee has not paid the rent directly to the landlord - CIT(A)allowed the claim - Held that:- Assessee is getting twin benefit from the employer, first is of rent free accommodation provided by the employer to the assessee employee for which the employer is incurring rental expenditure of Rs. 1.70 lacs per month in addition to providing interest free deposit of Rs. 40 lacs with the land lord and 2nd being received by the assessee is this that he is getting HRA of Rs.3 lacs approximately per month including special HRA of Rs.1.70 lacs per month and out of these two benefits the assessee is making one payment i.e. reimbursement of rentals to the employer company @ Rs.1.70 lacs per month, thus this reimbursement is considered against the free housing accommodation provided by the employer company to the employee assessee, then this reimbursement of house rent to employer is no more available to be considered for exemption u/s 10(13A). Once, the housing perquisite value is worked out as 'nil' after considering this rental payment of Rs.1.70 lacs per month to the employer company, there is no rental payment made by the assessee employee for the purpose of working out exemption of HRA u/s 10(13A)and, therefore, the disallowance made by the A.O. regarding the claim of the assessee for exemption u/s 10(13A) is in order - against assessee.
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