| Case ID |
08eb1a2d-8684-4f67-916b-f5a5ad59d393 |
| Body |
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| Case Number |
F.M.A.T.No. 2761 of 1994 with F.M.A.No.38 of 1997 |
| Decision Date |
Jan 29, 1997 |
| Hearing Date |
|
| Decision |
The appeal was dismissed, affirming the decision of the Single Judge that the standard rent paid by the employees of the bank for accommodation provided is not a perquisite under Section 17(2) of the Income Tax Act. The court held that since the rent was uniform and fixed under bank regulations, it did not constitute a concession, and thus Section 3(b) of the Income Tax Rules was not applicable. The judgment emphasized that perquisites are applicable only when accommodations are provided at concessional rates, which was not the case here. Therefore, the standard rent charged did not warrant any additional income tax implications. |
| Summary |
This case revolves around the interpretation of perquisites under the Indian Income Tax Act, specifically regarding residential accommodation provided by a nationalized bank to its officers. The central issue was whether the standard rent charged to the officers constituted a perquisite under Section 17(2) of the Act. The court concluded that since the rent was uniform and set by bank regulations, it did not qualify as a concession, which is a prerequisite for classifying it as a perquisite. The ruling reinforces the distinction between standard rent and concessional rent, clarifying tax obligations for employees receiving housing benefits. This decision is significant for tax law and employment regulations within government undertakings. |
| Court |
Calcutta High Court
|
| Entities Involved |
Vijaya Bank
|
| Judges |
Visheshwar Nath Khare, C.J.,
Barin Ghosh, J.
|
| Lawyers |
Rupen Mitra,
Prabir Kumar Bhowmick,
R. Murarka,
Prasanta Kumar Mullick
|
| Petitioners |
ALL INDIA VIJAYA BANK OFFICERS ASSOCIATION
|
| Respondents |
Income Tax OFFICER and others
|
| Citations |
1999 SLD 16,
1999 PTD 107,
(1997) 225 ITR 37
|
| Other Citations |
Indian Bank Officers Association v. Indian Bank (1994) 209 ITR 72 (Cal.),
Officers Association, Bhilai Steel Plant v. Union of India (1983) 139 ITR 937 (MP)
|
| Laws Involved |
Indian Income Tax Act, 1961,
Indian Income Tax Rules, 1962
|
| Sections |
17(2),
3(b)
|