High Court Of Delhi
CIT vs. Dayawati Modi
Section 2(24)(iv)
Asst. Year 1971-72
A.S. Sikki, J.
IT Ref. No. 46 of 1983
6th December, 2001
Counsel Appeared
R.C. Pandey with Ms. Prem Lata Bansal, for the petitioner : S.K. Aggarwal, for the Respondent
JUDGMENT
By the court :
The question relating to asst. yr. 1971-72 involved in this matter is as follows :
Whether on the facts and in the circumstances of the case, the Tribunal was right in law in directing that the value of perquisite for residential accommodation be limited to Rs. 12,961 ?
Whether on the facts and in the circumstances of the case, the Tribunal was right in directing that the value of the perquisite in the shape of rent-free accommodation be limited to the value fixed by the prescribed authorities under s. 9 of the U.P. Urban Buildings (Regulations of Letting, Rent and Eviction) Act 1972 for the asst. yr. 1971-72 ?
2. From the order passed by the Tribunal it appears that the standard rent fixed under the provisions of the Rent Control Act have been considered to be the perquisite given to the assessee herein by way of rent free house accommodation. The matter appears to be covered by a Division Bench decision of this Court in CIT vs. M.K. Modi (1993) 112 CTR (Del) 176 : (1993) 200 ITR 673 (Del) where this Court has categorically held that when the property belonging to the company is allowed to be used by a director, then even though it may not be a case of letting out, the value of the rent free accommodation has to be determined as per the decision of the Supreme Court in the case of Dewan Daulat Rai Kapoor’s vs. New Delhi Municipal Committee & Anr. (1980) 122 ITR 700 (SC) and the standard rent will determine the value. Following the aforementioned decision we are of the pinion that the Tribunal was right in deciding the said question in favour of the assessee.
[Citation : 259 ITR 375]
