TMI Blog1979 (11) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances of the case, the Tribunal erred in law in holding that the amount received by the assessee on account of house rent allowance was not liable to be included in his taxable income for each of the four years ? " The brief facts giving rise to these references may thus be stated. The assessee, Hon'ble Mr. Justice S. C. Mittal, is a sitting judge of the Punjab and Haryana High Court. He claimed exemption in respect of house rent allowance (hereinafter shortly referred to as " the HRA ") which he received at Rs. 3,150 in each of the first two years, Rs. 3,293 for the third year and Rs. 2,564 for the last year. The house in question is jointly held by Mr. justice S. C. Mittal with his brother and Mr. Justice S. C. Mittal was p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions raised by the learned counsel for the parties, the provisions of s. 10(13A) of the Act and r. 2A of the Rules may be reproduced as under : " 10. Incomes not included in total income.-- In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included-- ........ (13A) any special allowance specifically granted to an assessee by his employer to meet expenditure actually incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee, to such extent (not exceeding three hundred rupees per month) as may be prescribed having regard to the area or place in which such accommodation is situate and other relev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive, i.e., against the revenue and in favour of the assessee. The provisions of s. 10(13A) of the Act have been enacted to compensate the assessee regarding the expenditure incurred on payment of rent in respect of residential accommodation occupied by him. The main object for enacting this provision appears to be that in case an assessee actually suffers monetary loss by way of expenditure or otherwise in respect of residential accommodation occupied by him and if he is compensated by his employer in that case, subject to the limitations imposed under the Act and the Rules, the allowance paid to him by the employer, shall be exempt from income-tax. An assessee, who occupies his own house, has disentitled himself from the rent which he woul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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