TMI Blog2003 (12) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... ular hiring rate by the employer to the employee cannot be treated to be a concessional rate - - - - - Dated:- 16-12-2003 - Judge(s) : KALYAN JYOTI SENGUPTA. JUDGMENT E KALYAN JOTHI SENGUPTA J. -By this application the petitioners being the Officers' Organisation of the Corporation Bank have challenged the taxability of the use of furniture at concessional hire rent. Under the direction of the Income-tax Department, the bank concerned has treated this use of the furniture to be a perquisite under section 17(2)(iii) of the Income-tax Act, 1961. The admitted position is that under the service rules of the bank concerned, the officers, if so advised, may get the facilities and amenities of the use of the furniture to be supplied by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earing the Revenue or any of the respondents. Since this law has been settled, this so called hiring charges of furniture allegedly at concessional rate cannot be brought under taxability. Mr. Shome, learned senior counsel appearing for the respondents, submits that it is clear from the affidavit-in-opposition of the bank concerned that the value of the use of the furniture provided by the bank to its officers is certainly at a concessional rate and can be treated as "perquisite" for taxing. Therefore, there is nothing wrong under the law in this matter. He, therefore, contends that the judgment cited by Mr. Murarka is not applicable and the same is distinguishable on the facts. He further submits that the word "perquisite" used in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his furniture from the market at a higher rate supplied it to its employees at a lesser rent. There may be another instance where the bank as a matter of course is letting out in the market the furniture at a particular rate and then charging at a lower rate while letting out to its employees meaning thereby there is distinct and marked differentiation in the rate of hiring. There may be another instance where two different rates are being charged for hiring, interse employees. None of the aforesaid cases is visualised nor spelt out in the affidavit in opposition. Therefore, I think the concept of concessional rate is absolutely misplaced here. I do not find any reason to take any different view in this matter from what I had taken earlie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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