ACIT Circle-74(1), New Delhi vs. Indian Institute of Technology, Delhi

Parties Involved

Facts Summary

The assessee, Indian Institute of Technology, Delhi, is an institution set up under The Institutes of Technology Act, 1961, funded by and under the administrative control of the Ministry of Education, Government of India. The Ministry framed the ‘Indian Institute of Technology, Delhi Statutes’ for the respondent. According to these statutes, every employee may be allotted an unfurnished house within the campus for residential use, for which a prescribed license fee is charged. The Assessing Officer (AO) held that the respondent was required to deduct tax at source on the perquisite value of accommodation provided to employees. Aggrieved by this order, the assessee appealed to the Commissioner of Income Tax (Appeals) who deleted the demand, holding there was no perquisite value of rent-free accommodation. The Revenue then appealed to the Tribunal.…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in holding that there is no perquisite value of the rent-free accommodation provided to the employee.
• 2. Whether the Ld. CIT(A) erred in not appreciating that IIT Delhi, though Govt. funded, is not exempted from addition of perquisite valuation of rent-free accommodation (RFA) in their employee’s income.
• 3. Whether the Ld. CIT(A) erred in appreciating the fact that a number of employees are availing the benefit of RFA.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Deputy Commissioner of Income Tax, Central Circle-1, Noida vs. M/s Advant IT Park Private Ltd.

  Delhi Bench 'A', New Delhi benchAY 2016-17, 2017-18, 2018-19Dismissed

• ITA No. 4025/DEL/2012 [A.Y 2009-10] The A.D.I.T [E] Vs Andhra Pradesh Technology Development & Promotion Centre

• M/s Xerox India Limited Vs. DCIT

  Delhi Bench benchAY 2020-21Dismissed

• ITA No. 6254 Aster Tradelinks Pvt Ltd & CO- 4/D/2026

• The A.C.I.T Vs. Index Securities & Research Pvt Ltd

  Delhi ‘C’ Bench benchAY 2011-12Dismissed

• Jayshree Rao Vs. The Income Tax Officer

  Ahmedabad bench