1999 (3) TMI 65

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.... house rent allowance received by the assessee from his employer to each of the accounting years relevant to the assessment years 1980-81 and 1981-82 was not liable to be included in the total income of the assessee for those two assessment years under section 10(13A) of the Income-tax Act, 1961, even though the assessee resided in his own house in those two years ?" The assessee is an individual. The assessment years involved in this reference are 1980-81 and 1981-82, the relevant accounting years being the years ended on March 31, 1980, and March 31, 1981, respectively. In each of these two accounting years, the assessee received a sum of Rs. 4,800 as house rent allowance from his employer. The assessee claimed that the above amount wa....

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....stood as follows : "10. Incomes not included in total income.---In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included --- . . . (13A) any special allowance specifically granted to an assessee by his employer to meet expenditure actually incurred on payment of rent by whatever name called) in respect of residential accommodation occupied by the assessee, to such extent (not exceeding four hundred rupees per month) as may be prescribed having regard to the area or place in which such accommodation is situate and other relevant considerations." There was a divergence of opinion in regard to the interpretation of the above clause (13A) of section 10 ....