Case Law Details
National Dairy Research Institute Vs ACIT (TDS) (ITAT Bangalore)
The only issue in the present case is, for the purpose of valuing perquisites of the accommodation, provided to employees of the assessee society should be done under clause (i) or clause (ii) of table 1 of rule 3 of the Income-Tax rules 1962. Clause (i) of sub rule (1)of rule 3 of Income Tax rules is applicable in case of employees of Central Government or State Government. Clause (ii) of sub rule (1) of rule 3 of Income Tax rules is applicable in case of other than Central and State Government employees. Therefore, the issue which requires to be adjudicated is whether the employees of assessee-society are employees of Central Government or not. Needless to say that once the employees of the society are treated as employees of the Central Government for the purpose of evaluating perquisites of rent free accommodation, rules prescribed under clause (i) of sub rule (1)of rule 3 of Income Tax rules are to be adopted. Otherwise clause (ii) of sub rule (1)of rule 3 of IT Rules is to be adopted. An identical issue had come before the co-ordinate bench of this Tribunal in the case of Central Food Technology research versus TDS officer in ITA No. 1607 to 1611/Bang/2013 wherein this Tribunal took a view that the employees of the corporation fully controlled by the Central Government cannot be equated with Central Government employees though it is instrumentality of the State within the meaning of Article 12 of the Constitution of India.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
This is an appeal filed by the assessee directed against the order of the learned Commissioner of Income-tax (Appeals)-13, Bengaluru [CIT(A)] dated 21/06/2017 for the assessment years 2011-12 to 2013-14.
2. Briefly facts of the case are as under:
Please become a Premium member. If you are already a Premium member, login here to access the full content.
