COMMISSIONER OF INCOME TAX Vs. DAYAWATI MODI

JUDGEMENT

(1.) THE question relating to asst. year 1971 72 involved in this matter is as follows :

(2.) FROM the order passed by the Tribunal it appears that the standard rent fixed under the provisions of the Rent Control Act have been considered to be the perquisite given to the assessee herein by way of rent free house accommodation. The matter appears to be covered by a Division Bench decision of this Court in CIT vs. M.K. Modi (1993) 112 CTR (Del) 176 : (1993) 200 ITR 673 (Del) where this Court has categorically held that when the property belonging to the company is allowed to be used by a director, then even though it may not be a case of letting out, the value of the rent free accommodation has to be determined as per the decision of the Supreme Court in the case of Dewan Daulat Rai Kapoor's vs. New Delhi Municipal Committee & Anr. (1980) 122 ITR 700 (SC) and the standard rent will determine the value. Following the aforementioned decision we are of the pinion that the Tribunal was right in deciding the said question in favour of the assessee.