TMI Blog1979 (12) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... the instance of the Commissioner of Income-tax, Patiala : " Whether, on the facts and in the circumstances of the case, the Tribunal erred in law in holding that the amount received by the assessee on account of HRA was not liable to be included in his taxable income? " The assessee, Mr. Justice M. S. Gujral, Chief justice of the Sikkim High Court, was a judge of the Punjab and Haryana High C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act cannot be that no exemption should be allowed where the expenditure is not incurred in cash. The assessee also stressed before the I.T. authorities that HRA was granted by the Government under the Rules framed by the Finance Department and that the A. L. V. of the HUF house was determined by the Public Works Department and only the amount in excess of ten per cent. of the salary was allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 977-78, which cases were decided against the revenue and for the same reasons recorded therein, the appeal was liable to be dismissed. A similar question came up for consideration before this court in CIT v. Justice S. C. Mittal [1980] 121 ITR 503 and CIT v. Shri B. R. Tuli (I.T.R. Nos. 58 to 61 of 1979) [1980] 125 ITR 460 (P H) and this court, vide Bench judgments dated 21st November, 1979, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has disentitled himself from the rent which he would have been entitled to if he had not occupied the same himself, and in that sense he suffered expenditure in that regard. In that sense, an assessee occupying his own house if compensated by the employer by payment of a special allowance (HRA), subject to the restrictions as imposed under the Act and the Rules, the compensation paid to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll the four relevant assessment years was below the maximum prescribed limit. It is equally well settled that even if two interpretations of a particular provision are possible, in that case, the I.T. Act, being a taxing statute, one favourable to the assessee would be preferred. The view taken by the Tribunal in this regard is unexceptional. " In view of the Bench decision in Justice S. C. Mitt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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