PRINCIPAL COMMISSIONER OF INCOME TAX -12,KOLKATA vs. SRI RAGHU NANDAN MODI

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ITAT/118/2018HC CalcuttaWBCHCO001207201830 November 2021Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court disposed of the appeal on the grounds of low tax effect, leaving the substantial questions of law open. Therefore, the ITAT's decision on the valuation method was not overturned by the High Court.

What were the facts?

The Revenue appealed against an ITAT order concerning the valuation of perquisites for rent-free accommodation. The ITAT had held that the valuation should be based on municipal guidelines, not market rent.

What were the issues?

Whether perquisites for rent-free accommodation should be valued as per municipal guidelines or market rent. The appeal was dismissed due to low tax effect, not on merits.

Which sections of the Income-tax Act were involved?

Section 260A,Section 23(1)(a)

AI-generated summary — verify with the full judgment below

OD-26 ITAT/118/2018 IA NO: GA/2/2018(Old No.GA/884/2018) IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (INCOME TAX) ORIGINAL SIDE PRINCIPAL COMMISSIONER OF INCOME TAX-12, KOLKATA VERSUS SRI RAGHU NANDAN MODI BEFORE : THE HON’BLE JUSTICE T.S. SIVAGNANAM And THE HON’BLE JUSTICE HIRANMAY BHATTACHARYYA Date : 30th November, 2021 Appearance :-

Mr. Suniti Chatterjee, Adv. … For Appellant Mr. J.P. Khaitan, Sr. Adv. Mr. Asim Chowdhury, Adv. … For Respondent

The Court : This appeal by the assessee filed under Section 260A of the Income Tax Act, 1961 (the Act, for brevity) is directed against the order dated 2nd June, 2017 passed by the Income Tax Appellate Tribunal, “B” Bench, Kolkata in ITA No.2186-87/Kol/2014 for assessment years 2010-11 and 2011-12. The appellant has raised the following questions of law for consideration :- “Whether on the facts and the circumstances of the case, the Learned Income Tax Appellate Tribunal, “B” Bench, Kolkata was justified in law or in holding that perquisites of rent free

2 accommodation can be determined only in pursuance of provisions of Section 23(1)(a) of the Act which requires to determine the same as per the guidelines of Municipal Corporation and not what the property might reasonably be expected to let out from year to year ?” We have heard Mr. Suniti Chattrjee, learned Standing Counsel appearing for the appellant revenue and Mr. J.P. Khaitan, learned Senior Counsel appearing for the respondent assessee. It is submitted on behalf of the appellant revenue that the present appeal cannot be pursued by the revenue on account of low tax effect. Accordingly, in view of the said submission, the appeal stands disposed of on the ground of low tax effect. However, substantial questions of law are left open. The appeal and the connected application are, accordingly, disposed of. (T.S. SIVAGNANAM, J.)

(HIRANMAY BHATTACHARYYA, J.) SN/S. Das AR(CR)

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