House-rent exemption under section 10(13A) is unavailable for self-owned accommodation without actual rent expenditure.

Section 10(13A) house-rent exemption applies only to a special allowance meeting expenditure actually incurred on rent for residential accommodation. The retrospective Explanation inserted by the Taxation Laws (Amendment) Act, 1984 excludes cases where the accommodation is owned by the assessee or where no rent has in fact been paid. On that basis, self-owned occupation without actual rent expenditure falls outside the exemption and the claim is not admissible.

---

---

Issues: Whether exemption under section 10(13A) of the Income-tax Act, 1961 was admissible where the assessee occupied a residential house owned by him and had not actually incurred rent expenditure.

Analysis: The exemption under section 10(13A) applies only to a special allowance granted to meet expenditure actually incurred on payment of rent for residential accommodation occupied by the assessee. The Explanation inserted by the Taxation Laws (Amendment) Act, 1984 with retrospective effect from 1 April 1976 expressly declares that the clause does not apply where the accommodation is owned by the assessee or where no rent has actually been paid. Since the assessee lived in his own house and no rent was paid, the statutory conditions for the exemption were not satisfied.

Conclusion: The exemption claim under section 10(13A) was not admissible and the question was answered against the assessee and in favour of the Revenue.

Final Conclusion: The reference was disposed of by holding that self-owned residential accommodation is outside the scope of the claimed house-rent exemption where no actual rent expenditure is incurred.

Ratio Decidendi: Section 10(13A) exemption is unavailable when the assessee occupies self-owned residential accommodation and has not actually incurred rent expenditure, especially in view of the retrospective Explanation excluding such cases.

---