TMI Blog1983 (8) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... alue of this accommodation at Rs. 9,394 without taking into consideration the fair rental value of the same. The ITO, however, found that the flats in the same building were let out for a monthly compensation of Rs. 2,000 to Rs. 4,700, according to their respective areas. The ITO, therefore, determined the fair rental value of the flat provided to the assessee at Rs. 2,500 per month. He proceeded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the employee would be the rent which a similar accommodation would realise in the same locality or the municipal valuation in respect of the accommodation, whichever was higher. In the instant case, it is submitted that the reliance by the AAC on the municipal valuation alone was erroneous. On behalf of the assessee, it is submitted that under section 23(1)(a) of the Income-tax Act, 1961 (' the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rference. 3. We have carefully considered the facts and circumstances of the case and the submissions on either side. The learned Judges of the Supreme Court were called upon to interpret the provisions of section 23(1)(a) in the case of Mrs. Sheila Kaushish where they explained that the sum for which the property might reasonably be expected to be let from year to year, in the case of rented p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 was the municipal valuation for the accommodation, but the ITO has, on the basis of the rents prevailing in the same building, proceeded to determine the fair rental value of the property, which he determined at Rs. 30,000. Under Explanation 2 he has to take the higher of the two, viz., Rs. 30,000 to be the perquisite value of the property, This he has done. The AAC has, therefore, erred in inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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