TMI Blog1998 (11) TMI 692X X X X Extracts X X X X X X X X Extracts X X X X ..... h a residential accommodation by such bank and 10 per cent of the salary of such employee as perquisite within the meaning of s. 17(2) of the IT Act. 2. The affidavit filed by the General Secretary of the association is lacking in relevant factual details. It merely proceeds to set out legal argument without the requisite foundation of facts. 3. The learned counsel for the employer bank submitted that the accommodation provided to its officers is the accommodation owned by the bank and not taken on hire by the bank. The learned senior counsel for the Revenue fairly stated that if the employer chooses to fix a particular rate as a rate of rent for the accommodation owned by it and made available to its employees, the determ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tial accommodation provided at a concessional rate. 6. Thus, what is required to be treated as a perquisite when a residential accommodation is provided to an employee by an employer is the value thereof in cases where the accommodation has been provided rent-free, as also in cases where the accommodation is provided at a concessional rate. Where an employer provides accommodation to its employees on a rental basis which is not concessional and which obviously is not provided rent-free, it is the actual rent that is required to be considered and not a notional rent. An employer, who builds residential building and apartments for the purpose of accommodating his employees does not do so as an investment with the object of obtaining ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to make enquiries and decide as to whether r. 3(b) is not at all attracted having regard to the facts as ascertained by him. 9. While doing so, the AO shall keep in view the observations made in the course of this order. The declaration sought by the petitioner cannot be granted. However, liberty is reserved to the members of the petitioner association to place such facts as are relevant, if and when the AO seeks to treat any part of the value of the accommodation provided to them as a perquisite. It is open to the petitioner association to make a collective representation to the CBDT in this regard. The Board shall consider the same in accordance with law. 10. The writ petition is disposed of accordingly. No costs. Conse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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