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Case Law Details

Case Name : DCIT Vs. Kuldeep D Kaura (ITAT Ahmedabad)
Related Assessment Year : 2006-07
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Assessee was allowed to occupy the leased accommodation provided by the employer for which the employer paid rent as per lease & license agreement and this was also one of the reasons given by the A.O. for disallowing the claim of the assessee u/s 10(13A) of the Act. We find that in the facts of the present case, the assessee is getting twin benefit from the employer, one of which is not taxed on the basis of reimbursement of rent by the assessee to the employer. The first benefit is of rent free accommodation provided by the employer to the assessee employe

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2 Comments

  1. Vandana says:

    Wow! What a judgement. So because of our weak government systems, an employee is forced to take rental accommodation thru company lease and then neither company gets deduction of that rent as it is reimbursed not employee gets deduction as it’s counted towards perqusite satisfaction and hence 10(13)A not available. I haven’t seen such a basic common sense situation which even a lay person like me can understand that deduction has to available to at least one.. did not find favour with any of experts.. all the combined might of CAs and IT officers are living with this judgement for years..I don’t get it .. india is way superior a country to miss this. Maybe it impacts very few people but wrong principles being implemented at policy level for years.. wow was for that

  2. Prabhakaran V says:

    Sir, 10% of the basic salary being deducted towards standard rent on the leased accommodation provided by the CPSE, this is incorrect. As per DPE directions 10% of the salary or the actual rent, whichever is less only to be deducted. Here 10% of the actual rent would be invariably less than the 10% of the basic salary. Can you please clarify

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