CIT Vs. TELSUO MITERA

JUDGEMENT

(1.) The revenue has preferred these appeals under Section 260A of the Income Tax Act, 1961 ( Act?, for short) in the case of Telsuo Mitera, Isao Sakai Yoshimi Kamano and Yuji Horikawa. These appeals pertain to the assessment year 2006-07. As a similar issue arises for consideration, we are disposing of these appeals by this common order.

(2.) The question/issue raised in the present appeal is whether the tax paid by the employer (Japan Airlines International Company Limited) is a perquisite within the meaning of Section 17(2) and, therefore, in terms of Rule 3 of the Income Tax Rules, 1962 (for short, Rules) cannot be taken into consideration for computing value of the perquisite rent free accommodation .

(3.) Relevant portion of Rule 3 and the Explanation thereto applicable with effect from 01.04.2001: -