Kalyan Jyoti Sengupta, J. - (1.) By this application the petitioners being the Officers' Organisation of the Corporation Bank have challenged the taxability of the use of furniture at concessional hire rent. Under the direction of the Income-tax Department, the bank concerned has treated this use of the furniture to be a perquisite under Section 17(2)(iii) of the Income-tax Act, 1961. The admitted position is that under the service rules of the bank concerned, the officers, if so advised, may get the facilities and amenities of the use of the furniture to be supplied by the bank at a particular rate of hire charges. This rate has been fixed under the condition of employment at a sum equivalent to 2.05 per cent of the basic pay. Admittedly, in the event the aforesaid amenities are not availed of, then no monetary benefit is given to any of the employees in lieu thereof.
(2.) The affidavit-in-opposition filed by the bank factually says the furniture is supplied to the officers as a matter of course under the norms and convention at a rate much less than the market rate. The facts and figures of the possible rate in the market have been given in respect of various furniture supplied to and placed at the disposal of the officer concerned for use.
(3.) Mr. Murarka, learned senior counsel appearing in support of the writ petition, submits that the rate of hire of furniture being charged by the employer has not been accepted judicially as being a concessional one so as to treat the same as perquisite under the aforesaid section. In support of his submission he has relied on a decision of the learned single Bench of this court, reported in All India Vijaya Bank Officers' Association v. Vijaya Bank [2001] 250 ITR 500. He contends that the aforesaid judgment was rendered following other decisions, viz., the Division Bench of this court as well as the decisions of the Madhya Pradesh and Andhra Pradesh High Courts. Those judgments are also cited in this case as part of his argument.;