K.AGRAWAL, J. - (1.) THE Tribunal has referred the following question of law under s. 256(1) of the IT Act, 1961 (hereinafter referred to as "the Act") for opinion to this Court : "Was the Hon'ble Tribunal on facts and circumstances of the case justified in law in holding that the valuation fixed by A.D.M. (City) at Rs. 20,000 per annum should be treated as the fair market value of the accommodation for the purpose of perquisite against Rs. 2,55,000 fixed by the AO -
(2.) THE reference relates to the asst. yrs. 1987 -88 and 1988 -89.
(3.) BRIEFLY stated, the facts giving rise to the present reference are as follow : The assessee had been provided l/3rd portion of Ganga Kutir by the company as rent free accommodation for residential purposes. The said property belongs to M/s J.K. Bankers and the said firm had leased out the said properties to various companies, which are controlled by the family members of the group. The only dispute is regarding the valuation of perquisites of this rent free accommodation provided to the assessee by the company. The AO had not accepted the value of the perquisites of the said rent free accommodation as declared by the assessee and after taking into account certain factors, enhanced the value of the alleged perquisites. Being aggrieved with the enhancement made by the AO, the assessee preferred an appeal before the CIT(A) who dismissed the appeal and confirmed the order of the AO. The assessee being aggrieved filed second appeal before the Tribunal. The Tribunal relying upon its earlier order in the case of J.K. Bankers and in the case of the assessee himself for the asst. yr. 1982 -83 held that it is only l/3rd of the annual letting value of Rs. 20,000 which is to be taken as perquisite value of the portion of Ganga Kutir occupied by the assessee. We have heard Sri R.K. Upadhaya, learned standing counsel for the Revenue and Sri R.S. Agrawal, learned counsel appearing for the assessee.;