TaxTMI 
TaxTMI 
2022 (8) TMI 740
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....ng heard and is liable to be quashed. 2. The Ld. AO have erred in law and on facts in making addition of Rs.25,41,859 under the head salaries without considering the facts of the appellant's case. 3. The Ld. AO have erred in law and on facts in making addition of Rs.25,41,859 under the head salaries merely based on Form No. 26AS. 4. Ld. CIT(Appeals) have also The Ld. AO have erred in law and on facts in determining the total income of Rs.25,02,107 by adopting figure of gross salary of Rs.26,26,187 and by reducing deduction of Rs.1,24,080 under Chapter VI-A of the Act. 5. The Ld. ITO as well the Ld. CIT(A) have erred in law and on facts in not giving the benefit of Sec. 10 and thereby not allowing the ....
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....ation filed before this Tribunal that the precedents of the Division Bench of this Tribunal and the High Courts have not been considered. The Tribunal in ITA no. 715/Ahd/2013 in the case of Bajrang Prasad Vs. ACIT 60 SOT 66 has held as under: "7. We have heard the rival submissions, perused the material available on record and the orders of the authorities below. We find that the AO disallowed the claim of the assessee on the ground that the assessee has not given details of payment and evidences and also on the basis that the assessee and his wife are living together, hence the claim of payment of rent is just to avoid payment of taxes and to reduce the tax liability. Ld.CIT(A) confirmed the addition on the ground that the rent is....
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....sessee, to such extent as may be prescribed having regard to the area or place in which such accommodation is situate and other relevant considerations. Explanation.-For the removal of doubts, it is hereby declared that nothing contained in this clause shall apply in a case where- (a) the residential accommodation occupied by the assessee is owned by him; or (b) the assessee has not actually incurred expenditure on payment of rent (by whatever name called) in respect of the residential accommodation occupied by him; 7.1. From the reading of the above section, it is clear that the requirement of the section is that any allowance (by whatever name called) granted to an assessee by his employer to meet expen....
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....upon this aspect of the matter. In this view of the matter, we delete the addition and direct the AO to allow exemption u/s.10(13A) of the Act to the assessee. This ground is also allowed as indicated above." 6. Further, the Hon'ble Punjab & Haryana High Court in the case of CIT Vs. M.S. Gujral , Chief Justice (1980) 125 ITR 655, has held as under: "3. A similar question came up for consideration before this court in CIT v. Justice S. C. Mittal [1980] 121 ITR 503 and CIT v. Shri B. R. Tuli (I.T.R, Nos. 58 to 61 of 1979) [1980] 125 ITR 460 (P & H) and this court, vide Bench judgments dated 21st November, 1979, answered the question against the revenue and in favour of the assessees. It was held in Justice S. C. Mittal's case ....
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....) of the Act and Rule 2A of the Rules have to be given effect to. The Rules and the section are not in conflict with each other. Rather, the Rules are supplementary to the section. Even if the assessee's case is covered by the Rules, the assessee will be entitled to exemption. The Rules impose the maximum limit to the extent of Rs. 400 per month. Admittedly, the house rent allowance paid to Mr. Justice S. C. Mittal during all the four relevant assessment years was below the maximum prescribed limit. It is equally well settled that even if two interpretations of a particular provision are possible, in that case, the IT. Act, being a taxing statute, one favourable to the assessee would be preferred. The view taken by the Tribunal in this ....
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....regard. In that sense, an assessee occupying his own house, if compensated by the employer by payment of a special allowance (HRA), subject to the restrictions as imposed under the Act and the Rules, the compensation paid to the assessee by his employer, cannot be subjected to tax. The Tribunal accepted the interpretation of the relevant provisions of the Act and we do not find any reason to take a different view than the one taken by the Tribunal. 7. Even otherwise, on the facts of the present case, it is clear that half of the house of Mr. Justice S.C. Mittal, which he was occupying, is owned by him and the remaining half portion of the house is owned by his brother to whom he has been paying the rent at the rate of Rs. 300 per m....