TaxTMI 
TaxTMI 
1982 (2) TMI 82
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....aw, the learned AAC has erred 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 ....
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....; 4,676 1977-78 9,732 2. Being aggrieved the assessee carried the matter in appeal before the AAC. Before him reliance was placed on an order of the Commissioner, Baroda, in which, in case of an employee of LIC it was held that the difference between the interest calculated at the rate of 10 per cent being ....
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.... 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 granted to an employee, the value of the benefit has to be determined in the light of the conditions which were laid down at the time when the loan was granted. In this connection, Shri Patel pointed out that the assessee was required to mortgage his house property in favour of employers and had also to obtain an insurance policy from LIC which was required to be assigned to the employers. The assessee was required to pay premium on the life ins....
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....bligation 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 Provident Fund and Miscellaneous Provisions Act, 1948 (46 of 1948) or, as the case may be, section 6C of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) to effect an assurance on the life of the assessee or to effect a contract for an annuity;" The above definition is an inclusive one and, therefore, ordinary meaning of the expression "perquisite" would apply in all cases. The perquisite is a ....
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....). 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 or amenity not specifically covered on such basis and in such amount as is fair and reasonable. Now there is no dispute about the fact that the interest charged to the employee-assessee is found to be at concessional rate, as such the same would amount to be a "benefit" which in turn could be taxed as "perquisite". The question, therefore, is whether on the facts the assessee has derived any such benefit and if so the am....