House rent allowance deduction under section 10(13A) was allowed for residential accommodation rent paid by the assessee.

Section 10(13A) was applied to house rent paid for residential accommodation, on the basis that the allowance is intended to exempt employer-provided rent support meeting actual rent expenditure. Where the provision admits two interpretations, the one favourable to the assessee was followed, and the deduction was held allowable against the sustained addition.

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Issues: Whether the assessee was entitled to deduction under section 10(13A) of the Income-tax Act, 1961 in respect of rent payment for residential accommodation.

Analysis: The only surviving grievance concerned denial of deduction for house rent paid by the assessee. The cited precedents held that section 10(13A) is intended to exempt allowance granted by the employer to meet actual rent expenditure for residential accommodation occupied by the assessee, and that where the provision admits of two interpretations, the one favourable to the assessee should be adopted. On that basis, the claim for deduction was examined as allowable against the assessed addition sustained by the lower appellate authority.

Conclusion: The deduction under section 10(13A) was held allowable, and the assessee succeeded to that extent.

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