COMMISSIONER OF INCOME TAX Vs. VIJAY SINGH

JUDGEMENT

(1.) PERTAINING to the asst. yr. 2001 -02.

(2.) THE sole dispute raised by the Revenue in this appeal is the upholding of the order of the CIT(A) by the Tribunal whereby the addition of Rs. 27,28,000 made by the AO as perquisite in the hands of the assessee on account of interest - free security deposit provided by the employer was deleted.

(3.) THE assessee was the managing director of M/s Sony Music Entertainment (India) Ltd. and had been provided with accommodation at Rockdale, Napean Sea Road, Mumbai. The said accommodation was owned by B.P. (India) Ltd. and had been taken by the company on lease for the purpose of residence of the assessee. In terms of the lease, the rent of Rs. 50,000 per month along with interest -free security deposit of Rs. 3.10 crores and additional guarantee of Rs. 5.50 crores was provided by the company on behalf of the employee. Thereafter the assessee purchased the said accommodation for a consideration of Rs. 3.12 crores and simultaneously entered into an agreement with the employer company for providing interest -free security deposit in the amount of Rs. 3.10 crores for lease of the said accommodation by the assessee to the employer company. In other words, out of the cost of the accommodation of Rs.