Rent-controlled residential accommodation could not be treated as a concessional perquisite where standard rent matched the amount paid.

Residential accommodation subject to rent control could not be valued as a concessional perquisite where the standard rent for similar premises had already been fixed at Rs. 30 per month. On those facts, payment of Rs. 30 per month was not a concession warranting any further addition under Rule 3 of the Income-tax Rules, 1962. The perquisite valuation made on the footing of concessional accommodation was therefore unsustainable, and the addition was deleted.

---

---

Issues: Whether the value of residential accommodation provided by the employer could be assessed as a perquisite under Rule 3 of the Income-tax Rules, 1962, when the premises was subject to rent control and the standard rent was Rs. 30 per month.

Analysis: The accommodation was found to be covered by the rent control regime applicable to the locality, and a similar premises had already been treated by the rent authorities as carrying a standard rent of Rs. 30 per month. On these facts, the payment of Rs. 30 per month could not be treated as concessional rent so as to justify any further addition as a perquisite. The assessment made on the footing of a concessional accommodation was therefore not sustainable.

Conclusion: The addition of Rs. 1,079 as perquisite value of residential accommodation was deleted and the assessee succeeded.

---