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of <h1>Tribunal values rent-free accommodation based on standard rent, aligning with Supreme Court interpretations.</h1> <h3>Wim Manintveld. Versus Additional First Income-Tax Officer.</h3> Wim Manintveld. Versus Additional First Income-Tax Officer. - ITD 017, 561, Issues:- Determination of perquisite value for rent-free accommodation provided to the assessee.Analysis:The judgment pertains to an appeal concerning the assessment year 1977-78, focusing on the determination of the perquisite value of rent-free accommodation provided to the assessee by the employer. The assessee occupied a residential accommodation in Bombay, and the dispute arose regarding the valuation of this accommodation. The municipal valuation was Rs. 7,716, but the Income Tax Officer estimated the market rent at Rs. 48,000, resulting in a net assessable value of Rs. 16,800 based on Explanation 2 to rule 3(a) of the Income-tax Rules, 1962.The Commissioner (Appeals) upheld the higher valuation, citing a previous ruling against the assessee for the assessment year 1976-77. The assessee contended that recent Supreme Court decisions should influence the valuation method, emphasizing that the standard rent should be considered as the reasonable rent, especially in light of rulings in cases like Dewan Daulat Rai Kapoor v. NDMC and Mrs. Sheila Kaushish v. CIT.The departmental representative argued that the Supreme Court rulings were not directly applicable to the employer-employee relationship scenario, emphasizing the specific provisions of Explanation 2 to rule 3(a. The Tribunal considered the impact of the Supreme Court rulings and the interpretation of the standard rent concept in determining the perquisite value of the rent-free accommodation.Ultimately, the Tribunal held that the perquisite value should be determined based on the standard rent of the accommodation, which was computed at Rs. 1,870 by a registered valuer, subject to further verification by the Income Tax Officer. The appeal was allowed in favor of the assessee based on this determination, aligning with the recent Supreme Court interpretations regarding standard rent as the reasonable rental value for such accommodations.
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