Commissioner Of Income Tax vs Seth Sudhir Kumar Modi
2003 Latest Caselaw 170 Del

JUDGMENT

D.K. Jain, J.

1. At the instance of Revenue, the Tribunal, New Delhi, has referred under Section 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,"

2. 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-assessed by his employer by way of rent-free accommodation, furniture, electricity and water.

3. From the order of the Tribunal we find that though the Tribunal has referred to its earlier Orders passed in the cases of the assessed 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 favor of the assessed.

4. Similar issue had come up for our consideration in the cases of some of the assesses belonging to the same group. In CIT v. Mahesh Kumar Modi (IT Ref. No. 6/1984), decided on 6th Feb., 2003, relying on an earlier decision in CIT v. M.K. Modi (1993) 200 ITR 673 (Del), wherein it was held that for determination of the market value of the perquisite provided to the assessed 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 Section 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 favor of the assessed and against the Revenue,

The reference Stands disposed of with no order as to costs.