In ITO v. Raghu Nandan Modi, the ITAT Kolkata held that rent-Free accommodation received by a Part Time-Director cum Employee from the Company cannot be taxable as “Business Income” under the provisions of Income Tax Act.
Assessee, in the instant case, was a part-time Director of M/s Prabhukripa Overseas Ltd. during his tenure, assessee received rent-free accommodation in the flat owned by the Company, POL. AO completed assessment by holding the value of the rent fee accommodation is taxable in the hands of the assessee under Section 2(24)(iv) of the Income Tax Act r.w.s. 17(2)/ 28(iv) of the Income Tax Act.
Article referred: http://www.taxscan.in/rent-free-accommodation-received-part-time-director-cum-employee-company-not-business-income-itat-kolkata/8145/
Assessee, in the instant case, was a part-time Director of M/s Prabhukripa Overseas Ltd. during his tenure, assessee received rent-free accommodation in the flat owned by the Company, POL. AO completed assessment by holding the value of the rent fee accommodation is taxable in the hands of the assessee under Section 2(24)(iv) of the Income Tax Act r.w.s. 17(2)/ 28(iv) of the Income Tax Act.
Article referred: http://www.taxscan.in/rent-free-accommodation-received-part-time-director-cum-employee-company-not-business-income-itat-kolkata/8145/
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