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2007 (11) TMI 302 - HC - Income TaxValuation of perquisites - the interpretation of rule 3(5) of the Income-tax Rules, 1962 - assessee’s school gives free education to the children of the staff – AO wrongly went by the cost of education for other students in the same school and took that as the perquisite value in the hands of the employee and levied tax on the assessee accordingly. - Rule 3(5) of the Rules, requires the Assessing Officer to determine the cost of education in a similar institution in or near the locality - Commissioner of Income-tax (Appeals) rightly held that on the basis of the accounts maintained by the assessee, the cost of education was Rs.902.27 per month per child and, therefore, the assessee is also entitled to the benefit of the proviso
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