ITA/515/2001 of THE COMMISSIONER OF INCOME TAX Vs M/S HUGES SERVICES FE PVT. LTD. on 30 December 2003

1. Whether on the facts and circumstances of the case the Ld. ITAT was not justified in holding that free accommodation facility provided by the employer to its employee on board the rigin high seas cannot be construed to be perquisite? ITAT was not justified in holding that free accommodation facility provided by the employer to its employee on board the rigin high seas cannot be construed to be perquisite?

2. Whether on the facts and circumstances of the case, the Ld. ITAT was not legally justified in holding that no perquisite arose on account of free accommodation facility provided by the employer to its employee and the assessment authority ITAT was not legally justified in holding that no perquisite arose on account of free accommodation facility provided by the employer to its employee and the assessment authority was not justified in charging interest u/s 2019A) of the IT

Act?

In our decision dated 9th October 2003 in Income Tax ActAppeal No. 57 of 2002; The Commissioner of Income Tax, Dehradun & another V/s SEDCO Forex International Drilling Co. Ltd., it has been held as under:

"In this case, assessee had to work on the rig. It washazardous, arduous and continuous. Under such circumstances free food and beverages is a necessity. It is not a luxury. It isnot a perquisite. Its value cannot be added to the income of theassessee.”

For the reasons aforesaid, we answer both the above questionsin the affirmative i.e. in favour of the assessee and against thedepartment.

Appeal disposed of. No order as to costs.

(Rajesh Tandon, J.)

(P.C. Verma, A.C.J.)