TMI Blog2001 (3) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... t there is no legal basis to recover the aforesaid amount after deducting standard rent of the furniture being supplied as per service condition to the officers concerned over and above a nominal rent being charged and recovered. He contends further that the levy of income-tax on the perquisite of the employees can be imposed under the provisions of section 17, sub-section (2). The aforesaid section authorises the employer concerned to deduct at source on account of tax on the value of any benefit or amenity granted or provided free of cost or at a concessional rate in any of the cases as mentioned in clauses (a), (b) and (c). In this case, he contends that admittedly the furniture by way of amenities has been provided by the bank but for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent in spite of the matter being called on. Mr. Murarka, learned counsel, has drawn my attention to a particular paragraph of the affidavit filed by the Department. He contends that the stand taken by the Department for computing the aforesaid rate is not in accordance with the correct legal position as they have justified showing a particular notification which contemplates for charging the rate on the basis of the market value. In view of the aforesaid decisions of the High Courts, the method contemplated in the aforesaid regulations is wholly inappropriate and inapplicable. Since none appeared for the respondents and having heard Mr. Murarka and considering the materials placed before me, the question which has fallen for my consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oyees at a concessional rate and if there was no concession rule 3(b) of the said rule was not applicable. The question of concession depends on the nature of accommodation provided to the employee, namely, the normal rent for such accommodation, provided by the employer, payable by other employees similarly situated and employed by the same employer and the actual rent paid by the assessee-employee concerned cannot be termed to be concession. The rent paid by all the employees of the bank was at a uniform rate and there was no departure in any manner in the case of any employee. In this situation, the question of concession does not arise. Therefore, the provision of the accommodation to the employees on the payment of standard rent was no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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