1978 (7) TMI 140

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....s to the assessment of income from house property and rent free unfurnished accommodation. 2. The undisputed facts are that M/s. Escorts Ltd. took on rent house property bearing No. D-85 Panchsheel Enclave from Smt. Niranjan Kaur w/o the assessee and paid her a rent of Rs. 11,088 for the financial year ending31st March, 1976. The ITO found that the assessee's wife was the benamidar of the asses....

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....al. On behalf of the assessee, it was submitted that the AAC was not justified in taxing the same income under two heads i.e., as income from house property and rent-free unfurnished accommodation. The action of the AAC was stated to be illegal as he could not assess new sources of income namely property let out as well as rent free unfurnished accommodation. In the alternative it was submitted th....

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.... from house property as income from property and of the value of the perquisite received by the assessee as an employee under r. 3 of the IT Rules. It was admitted before me that the assessee's wife Smt. Niranjan Kaur was the assessee's benamidar and the property really belonged to the assessee. 7. Property even though taken ostensibly from Smt. Niranjan Kaur by the assessee's employer M/s. Esc....

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....ollowing the CBDT Circular No. 130 dt.16th March, 1974which was applicable from the financial year ending31st March 1975onwards. The CBDT circular provides inter alia as follows: "In the case of employees residing inBombay,Calcutta,DelhiandMadrasthe existing instructions of the Board would continue to apply and as such, only the excess over 30 per cent of the Salary will be added to the basic v....