Standard rent governs valuation of rent-free accommodation perquisites, with the Tribunal's valuation upheld.

For valuing the perquisite of rent-free accommodation, the relevant benchmark is the standard rent fixed under the applicable rent control law for similar accommodation. The Tribunal's determination of the perquisite value of rent-free accommodation, furniture, electricity and water was upheld on that basis, as the market value had to be measured by reference to standard rent. The question was answered in favour of the assessee and against the Revenue.

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Issues: Whether the Tribunal was right in upholding the determination of the perquisite value of rent-free accommodation, furniture, electricity and water at Rs. 5,784.

Analysis: The reference related to assessment year 1981-82 and concerned valuation of a perquisite provided by the employer. The Tribunal had relied on earlier orders, and the controlling principle applied was that the market value of the perquisite in respect of rent-free accommodation had to be determined with reference to the standard rent fixed under the Rent Act for similar accommodation.

Conclusion: The question was answered in the affirmative, in favour of the assessee and against the Revenue.

Ratio Decidendi: For valuing the perquisite of rent-free accommodation, the relevant benchmark is the standard rent fixed under the applicable rent control law for similar accommodation.

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