TaxTMI 
TaxTMI 
1982 (2) TMI 82
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....in deleting the addition of Rs. 2,325 as perquisite under section 17(2)(iii)(c) of the Income-tax Act, being interest at concessional rate on loan given by the employer for construction of house." The facts leading to the controversy are stated thus : The assessee is an employee with Baroda Rayon Corpn. In course of the assessment proceedings, the ITO noticed that the assessee has been granted facility of loan by his employer at a concessional rate of 4 per cent for construction of house property. He, therefore, took the view that the difference between the market rate of interest and the interest charged from the employee amounted to perquisite which was assessable in the hands of the assessee under the head "Income from salaries". The I....
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....tored. Shri Patel, on the other hand, fairly pointed out that the learned Commissioner had occasion to reconsider his earlier decision in proceedings under section 264 of the Income-tax Act, 1961 ("the Act"), before him in case of Shri Natwarlal K. Desai, an employee of Bank of India. In that case it was held that the value of perquisite should be determined on the basis of the difference between the interest charged by the Central Government to its employees on housing loans and the rate of interest actually charged by the Bank of India Employees' Co-operative Housing Society Ltd. It was, therefore, pointed out that in the instant case even assuming for the sake of argument that grant of loan at concessional rate would amount to a benefit ....
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.... being a person who has a substantial interest in the company ; (c) by any employer (including a company) to an employee to whom the provisions of paragraphs (a) and (b) of this sub-clause do not apply and whose income under the head 'Salaries' exclusive of the value of all benefits or amenities not provided for by way of monetary payment, exceeds eighteen thousand rupees; (iv) any sum paid by the employer in respect of any obligation which, but for such payment, would have been payable by the assessee; and (v) any sum payable by the employer, whether directly or through a fund, other than a recognised provident fund or an approved superannuation fund or a Deposit-linked Insurance Fund established under section 3G of the Coal Mines Provi....
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....rom supply of gas, electric energy, water for his household consumption free of charge, and (e) the value of benefit to the assessee resulting from provision of free educational facility for any member of his household, is to be determined. It also provides that in certain cases the value of benefit or amenity shall be taken as nil. The rule 3(g) deals with the value of benefit or amenity not included in clauses 3(a) to 3(f). The rule 3(g) reads as follows : "The value of any benefit or amenity not included in the preceding clauses of this rule shall be determined on such basis and in such amount as the Income-tax Officer considers fair and reasonable." According to this sub-rule the ITO is required to determine the value of any benefit o....