COMMISSIONER OF INCOME TAX Vs. DAYAWATI MODI

JUDGEMENT

(1.) The questions of law raised in all these Income-tax References are common. For the sake of convenience, it would be appropriate to reproduce the questions referred for opinion in ITR No.287/81:

(2.) Before adverting to the aforesaid questions, it would be appropriate to state the background facts under which these questions have arisen in all these cases.

(3.) The various assessees in these cases are family members Who were provided accommodation in the residential house known as 'Modi Bhawan'. This was treated as a perquisite to them. These persons included one Shri GM.Modi. In a return, filed byy Sh.G.M.Modi the question arose as to whether the value of the perquisite on account of the aforesaid residential house was assessable under Section 2(24)(iv) of the Income Tax Act or Section 17(2) of the said Act. Income Tax Appellate Tribunal (Delhi Bench-B) decided on 12-12-1974 the said questions in favour of Shri G.M.Modi holding that it is the provision of Section 17(2) which would be applicable in the instant case. It is this order of the Income Tax Appellate Tribunal, which was in respect of Assessment Years 1965-66, 1966-67 and 1967-68, which has been followed in the case of Shri G.M.Modi for subsequent years as well as of other assessees in respect of various assessment years. The Income-tax Department that is the Commissioner of Income-tax sought reference under Section 256(2) of the Income-tax Act against these orders of the decision of the Income-tax Appellate Tribunal and the orders were passed by this Court directing the Appellate Tribunal to refer the aforesaid questions for its opinion. Since some of the assessees were subject to the Jurisdiction of Income-tax Department in U.P., the High Court of Judicature at Allahabad also directed the aforesaid questions to be referred for its opinion. By orders of Supreme Court, all these references stood transferred to this Court.