TaxTMI 
TaxTMI 
2024 (1) TMI 607
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.... Delhi. Admittedly it is funded by and works under the administrative control of the Ministry of Education (erstwhile Ministry of HRD), Government of India. 2.1. In accordance with the provision of the IIT Act, the Ministry of Scientific Research and Cultural Affairs, Government of India vide F. 25-10/62-T.6, dated 15.10.1963 framed the 'Indian Institute of Technology, Delhi Statutes ('IIT Statutes') for the Respondent. 2.2. As per the said "IIT Statutes", every employee of the Institute may be allotted an unfurnished house within the campus of the Institute for residential use in which he shall be required to reside, and shall be charged a prescribed license fee'. The amount of the license fee is decided under law and is deducted by the Respondent before the salary is paid to the employee. 2.3. The Ld. AO for the AY 2012-13, passed an order under Section 201 of the Act on 26.03.2014, holding that the Respondent was required to deduct tax at source on the perquisite value of accommodation provided to the employees at the rate of 15 percent of salary. As per Ld. AO, the perquisite on accommodation provided to the employees of the Respondent was to be computed in acc....
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....ctly observed that while autonomous body like Respondent is not Government owing to the similarity in the salaries provided to the employees of the Respondent, the computation of perquisite for accommodation should be at par with other Government employees. In this regard, it was submitted that it is pertinent to understand the level of Central Government involvement in the functioning of the Respondent Assessee. The Ld. AR referred to various clauses of IIT Act to submitted that the composition of the assessee and ownership of land on which assessee institute exists, power to dispose this land, constitution of board as appointed by the office of President of India, duties enshrined under the IIT Act, the funding of the activities of assessee, accounting in the form prescribed by Central Government in consultation with Comptroller and Auditor General of India, requirement that the Statutes framed under the IIT Act will require approval of the President of India and the facts like following were relied; * The employees are entitled to allowances and facilities as per the Central Government regulations. * The recruitment, promotion, and termination of employees are ....
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....istence by an Act of Parliament and the various clauses of the IIT Act and the IIT Statues, relied by the Ld. AR, which establish that there is some control of the Central Government, does not elevate the status of assessee of Central Government. It will be relevant to reproduce the para 8 of the judgment of Hon'ble Karnataka High Court in Indian Institute of Science V DCIT [2022] 140 taxmann.com 661 (Kar), which was approved by Hon'ble Supreme Court in case of Indian Institute of Science (supra), hereinbelow:- "8. Thus, it is evident that the value of residential accommodation provided by the Central Government or any State Government to the employees either holding office or post in connection with affairs of the Union or of such State or serving with any body or Undertaking under the control of such Government on such deputation has to be determined in the manner provided in Column Nos.3 and 4 of Sl.No.1 of Table 1 of Rule 3 of the Rules. The assessee, which is a Trust under the 1890 Act, is controlled and financed by the Central Government. The assessee is a Body or an undertaking controlled by the Central Government, governed by the Rules governing the service conditi....
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....) assessee had taken a specific plea that no 'concession' at all was provided to the employees in respect of rent and therefore Rule 3 is not applicable. This aspect has not all been dealt by the Ld. CIT(A) in the impugned order. Ld. AR, while supporting the order of Ld. CIT(A), has again canvassed this argument before us which we find is considerable under Rule 27 of the ITAT Rules, 1963. 11. Hon'ble Supreme Court of India in the case of Arun Kumar (supra) has taken into consideration an important aspect of Rule 3, that the same would apply only to cases where 'concession' has been shown by an employer in favour of an employee in the matter of rent respecting accommodation. Hon'ble Supreme Court has also held that determination of 'concession' is jurisdictional fact. It is only when there is a 'concession' in the matter of rent respecting any accommodation provided by employer to his employee that the mode, method or manner as to how such concession can be computed arises. It will be appropriate to reproduce the relevant part of paras 79 and 86 of the judgement in case of Arun Kumar (supra) here in below; " Para 79 ....If the assessee contends that there is no 'con....