Perquisite valuation under prescribed tax rules was held to be a factual issue, not a referable question of law.

Valuation of free furnished residential accommodation as a perquisite under the prescribed income-tax rule was treated as a factual exercise because the Tribunal applied rule 3(1)(ii) and no statutory provision was shown to have been ignored. Since the valuation was also not found unreasonable on the facts, the matter did not raise a debatable question of law for interference. The question was answered in favour of the Revenue and against the assessee.

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Issues: Whether the enhancement of the perquisite value for free furnished residential accommodation provided to the assessee gave rise to any question of law warranting interference.

Analysis: The Tribunal's valuation was made under rule 3(1)(ii) of the Income-tax Rules, 1962, and there was no suggestion that any statutory provision had been ignored. The valuation was also found not to be unreasonable on the facts. The reference turned essentially on appreciation of facts rather than on a debatable legal issue.

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

Ratio Decidendi: Where the valuation of a perquisite is made in accordance with the prescribed rule and is not shown to be unreasonable, the matter remains one of fact and does not generate a referable question of law.

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