Madras H.C : Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee is entitled to exemption under s. 10(13A) of the Act even though he resides in his own house ?

High Court Of Madras

CIT vs. K. Chockalingam

Section 10(13A), Explanation

Asst. Year 1982-83

R. Jayasimha Babu & Mrs. A. Subbulakshmy, JJ.

Tax Case No. 594 of 1986

11th November, 1998

Counsel Appeared

C.V. Rajan, for the Revenue : None, for the Assessee

JUDGMENT

BY THE COURT :

The assessee, an officer belonging to Indian Administrative Service, claims exemption for the amount of thehouse rent allowance received by him relying on s. 10(13A) of the IT Act, 1961, in respect of the asst. yr. 1982-83. During the period, the assessee was living in his own house and he had not incurred any expenditure towards payment of rent. The claim of the assessee had been rejected by the ITO but was accepted by the AAC on appeal. On further appeal, the Tribunal upheld the order of the AAC. In so doing, reliance was placed on the decision of the Punjab & Haryana High Court in the case of CIT vs. Justice S.C. Mittal (1980) 15 CTR (P&H) 294 : (1980) 121 ITR 503 (P&H) : TC 32R.593. Sec. 10(13A) of the IT Act was amended by the Taxation Laws (Amendment) Act, 1984, with retrospective effect from 1st April, 1976, by adding an Explanation. The Explanation so added reads as under : “Explanation.—For the removal of doubts, it is hereby declared, that nothing contained in this clause shall apply in a case where : (a) the residential accommodation occupied by the assessee is owned by him; or (b) the assessee has not actually incurred expenditure on payment of rent by whatever name called in respect of the residential accommodation occupied by him;” Having regard to this Explanation, the assessee who admittedly has not incurred expenditure on payment of rent, was clearly disentitled to claim the benefit of s. 10(13A) of the Act. The question referred to us, viz., “whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee is entitled to exemption under s. 10(13A) of the Act even though he resides in his own house ?” is answered in favour of the Revenue and against the assessee.

[Citation : 248 ITR 557]

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