TMI Blog2005 (12) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... ual rent paid by the assessee-employee concerned - income-tax was not leviable on the notional perquisite value of the accommodation. - we confirm the order of the Income-tax Appellate Tribunal - - - - - Dated:- 2-12-2005 - Judge(s) : P. C. VERMA., J. C. S. RAWAT. JUDGMENT J.C.S. Rawat J.-Since similar points of dispute are involved in all these appeals, therefore, they are being disposed of by this common order. These appeals have been filed by the appellants against the common order passed by the learned Income-tax Appellate Tribunal, Delhi Bench "C" Delhi (in short "ITAT") dated August 1, 2001, in T.D.S. Appeal No. 47 (Del)/95, T.D.S. Appeal No. 80 (Del)/95 and T.D.S. Appeal No. 28 (Del)/95, respectively. All these appeals are r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act, 1961 (hereinafter referred to as "the Act") and no deductions were made by the Assessing Officer. It was further held by the assessing authority that the assessee has taken the accommodation on lease at a higher rent and the same has been provided to its employee on the lower rent. The assessing authority concluded that the value of such concession in the matter of rent provided by the appellant to its employees was a perquisite in terms of the provisions of section 17 of the Act and the value of the same was to be computed in accordance with rules 2A and 3 of the Income-tax Rules, 1962. The assessing authority further calculated the short deduction of tax and also charged interest under section 201(1A) and the short deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the Assessing Officer was not justified in charging interest under section 201/201(1A) of the Income-tax Act?" We have heard learned counsel for the parties and perused the record. It is not disputed before us that the employees of the assessee were in fact paying standard rent which has been fixed by the assessee to all its employees and all employees similarly situated as the other employees are making payment in the same manner and to the same extent as other employees are doing. The parties had not disputed the facts as narrated above. Now the question remains for determination as to whether the concession given by the assessee to its employees is perquisite within the meaning of section 17 of the Act and is liable to be charged u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the employees were receiving any concession in the matter of rent. The assessee had not given any concession to the employees in the matter of rent. The other employees who had no concessional accommodation were paying the rent and the other officers to whom the concessional accommodation had been arranged by the assessee if they are paying the same rent to the assessee which other employees are paying, it cannot be said that it is a perquisite within the meaning of section 17. The definition of "perquisite" does not indicate that if the rent paid by the employee is less than standard, the difference will be deemed a perquisite. It was contended on behalf of the Revenue/Department that under rule 3 the assessee must be held to be enjo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to the employee in the matter of rent, there can be no question of any perquisite. A case of concession in the matter of rent would arise when the rent normally payable for the accommodation is higher than the rent paid. The definition of 'perquisite' does not say that if the rent paid by the employee is less than 10 per cent, of his salary, the difference will be deemed as perquisite. It is not uncommon that accommodations suiting the standard of the officers are not available and they have to occupy accommodations which are of lower category. The rent of such accommodations is low and if the rent paid in such a situation is less than 10 per cent of the salary (which is the rent normally payable for an accommodation of the category whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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