TMI Blog2021 (7) TMI 1052X X X X Extracts X X X X X X X X Extracts X X X X ..... ia. For the purposes of Rule 3, the requirement is that the accommodation should be provided by the Central Government or State Government to the employees either holding office or post in connection with affairs of Union or of State or serving with any body or undertaking under the control of such government from deputation. The aforesaid expression is unambiguous and unclear and therefore, its meaning cannot be expanded to include any body, undertaking under the control of Central Government. Merely because assessee is a body or undertaking owned or controlled by the Central Government, it cannot be elevated to the status of Central Government. Thus, the assessee cannot claim that valuation of perquisites in respect of residential accommodation should be computed as in case of an accommodation provided by the Central Government. Therefore, Sl.No.1 of Table 1 of Rule 3 of the Rules does not apply to the assessee. The substantial questions of law No.1 and No.2 are answered against the assessee and in favour of the revenue. Obligation to establish that the Appellant has provided any concession to the Employees in respect of the accommodation before applying Rule 3 of the Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch institution engaged in imparting higher learning and carrying out advanced research in science and technology. The assessee is recognized as a 'Deemed University' under the provisions of University Grants Commission Act, 1956 (hereinafter referred to as 'the UGC Act' for short). The service conditions of the employees of the assessee are governed by the rules as are applicable to the Central Government employees. Accordingly, TDS Return in Form 24Q was filed by the assessee under Section 192 of the Act read with Section 17(2) of the Act, for the period 01.04.2009 to 31.03.2010, which is applicable in respect of the employees of the Central Government. The Assessing Officer by order dated 26.04.2013 passed under Section 201(1) and 201(1A) read with Section 192 of the Act for the Assessment Year 2010-11 and held that the assessee had not correctly worked out the perquisite value of accommodation in accordance with amended Rule 3 of the Rules and the assessee is liable to be treated as assessee in default under Section 201(1) of the Act for non deduction / short deduction. It was further held that assessee is liable to pay interest under Section 201(1A) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;, (2006) 286 ITR 89 (SC), 'STAR TELEVISION NEWS LTD. VS. UNION OF INDIA', (2009) 184 TAXMAN 400 (BOM.). 5. On the other hand, learned counsel for the revenue submits that Sl.No.1 of Table 1 appended to Rule 3(1) of the Rules apply when the accommodation is provided by the Central Government or State Government. It is submitted that assessee is not a Central Government and therefore, is governed by Sl.No.2 of Table 1 appended to Rule 3(1) of the Rules. It is also submitted that the Supreme Court in 'ARUN KUMAR AND OTHERS VS. UNION OF INDIA', (2006) 286 ITR 89 (SC) has drawn a distinction between Central Government, State Government and employee of the other statutory Corporation / Undertaking. It is further submitted that Explanation 1 has been incorporated to Section 17(2) of the Act by Finance Act, 2007 with retrospective effect i.e., from 01.04.2002. Therefore, the question of grant of concession does not arise. It is also submitted that Section 201 of the Act covers the case of shortfall in payment of tax also and no question of law has been framed in this case with regard to applicability of Section 201 of the Act in case of shortfall of payment of ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... teen per cent of salary, whichever is lower, in respect of the period during which the said accommodation was occupied by the assessee during the previous year, exceeds the rent recoverable from, or payable by, the assessee. (b) in a case where a furnished accommodation is provided by the Central Government or any State Government, the licence fee determined by the Central Government or any State Government in respect of the accommodation in accordance with the rules of such Government as increased by the value of furniture and fixtures in respect of the period during which the said accommodation was occupied by the assessee during the previous year, exceeds the aggregate of the rent recoverable from, or payable by, the assessee and any charges paid or payable for the furniture and fixtures by the assessee; (c) in a case where a furnished accommodation is provided by an employer other than the Central Government or any State Government and - (i) the accommodation is owned by the employer, the value of the accommodation is determined under sub-clause (i) of clause (a) as increased by the value of the furniture and fixtures in respect of the period during which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the employees either holding office or post in connection with affairs of the Union or of such State or serving with any body or Undertaking under the control of such Government on such deputation has to be determined in the manner provided in Column Nos.3 and 4 of Sl.No.1 of Table 1 of Rule 3 of the Rules. The assessee, which is a Trust under the 1890 Act, is controlled and financed by the Central Government. The assessee is a Body or an undertaking controlled by the Central Government. governed by the Rules governing the service conditions of the employees of the Central Government. The assessee may be an instrumentality of the State of for the purpose of Article 12 of the Constitution of India. However, for the purposes of Rule 3, the requirement is that the accommodation should be provided by the Central Government or State Government to the employees either holding office or post in connection with affairs of Union or of State or serving with any body or undertaking under the control of such government from deputation. The aforesaid expression is unambiguous and unclear and therefore, its meaning cannot be expanded to include any body, undertaking under the control of Central ..... X X X X Extracts X X X X X X X X Extracts X X X X
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