Rent-Free Accommodation cannot be taxed if Salary is NIL

Rent Free Accommodation cannot given by Company to its part-time director cum Employee  cannot be taxed as Perquisites in the Hands of Director as he was receiving NIL Salary from Company and Similarly the Same cannot be taxed as Business Income as there was existing employees and employer relationship between assessee and Company. The issue before us in the instant case relates to the taxability of rent free accommodation provided by POL to the assessee. The assessee is a part-time director in the company from 01.04.2005 and he was not given any salary by POL. Admittedly the assessee was g...