1998 (11) TMI 692

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....ector bank on account of being provided with a residential accommodation by such bank and 10 per cent of the salary of such employee as perquisite within the meaning of s. 17(2) of the IT Act. 2. The affidavit filed by the General Secretary of the association is lacking in relevant factual details. It merely proceeds to set out legal argument without the requisite foundation of facts. 3. The learned counsel for the employer bank submitted that the accommodation provided to its officers is the accommodation owned by the bank and not taken on hire by the bank. The learned senior counsel for the Revenue fairly stated that if the employer chooses to fix a particular rate as a rate of rent for the accommodation owned by it and made availab....

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....he value of residential accommodation provided at a concessional rate. 6. Thus, what is required to be treated as a perquisite when a residential accommodation is provided to an employee by an employer is the value thereof in cases where the accommodation has been provided rent-free, as also in cases where the accommodation is provided at a concessional rate. Where an employer provides accommodation to its employees on a rental basis which is not concessional and which obviously is not provided rent-free, it is the actual rent that is required to be considered and not a notional rent. An employer, who builds residential building and apartments for the purpose of accommodating his employees does not do so as an investment with the object ....