High Court Of Delhi
CIT vs. Seth Sudhir Kumar Modi
Sections 17(2), Rule 3
Asst. Year 1981-82
D.K. Jain & Madan B. Lokur, JJ.
IT Ref. No. 169 of 1987
13th February, 2003
Counsel Appeared
Sanjiv Khanna with Subash C. Sharma, for the Petitioner : Santosh K. Aggarwal with Vinay Vaish, for the Respondent
JUDGMENT
D.K. Jain, J. :
At the instance of Revenue, the Tribunal, New Delhi, has referred under s. 256(1) of the IT Act, 1961, the following question for our opinion : “Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in upholding the determination of the perquisite value of the accommodation, furniture, electricity and water at Rs. 5,784.”
The reference pertains to the asst. yr. 1981-82. The issue is with respect to the determination of the value of perquisite provided to the respondent-assessee by his employer by way of rent-free accommodation, furniture, electricity and water.
From the order of the Tribunal we find that though the Tribunal has referred to its earlier orders passed in the cases of the assessee and other directors of the same company, but in the penultimate paragraph of its order, except for relying on the said order, it has not recorded any reason for deciding the issue in favour of the assessee. Similar issue had come up for our consideration in the cases of some of the assesses belonging to the same group. In CIT vs. Mahesh Kumar Modi (IT Ref. No. 6/1984), decided on 6th Feb., 2003, relying on an earlier decision in CIT vs. M.K. Modi (1993) 112 CTR (Del) 176 : (1993) 200 ITR 673 (Del), wherein it was held that for determination of the market value of the perquisite provided to the assessee by way of rent-free, accommodation, basis had to be the standard rent fixed by the Rent Controller in respect of similar accommodation by another person under s. 9 of the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972, we have affirmed the view taken by the Tribunal on both the issues. Following the said decision, we answer the question referred in the affirmative, i.e., in favour of the assessee and against the Revenue.
The reference stands disposed of with no order as to costs.
[Citation : 266 ITR 195]
