Law:

Section:

Section 10(13A) of the Income-tax Act, 1961 - House rent allowance - Assessment years 1978-79 and 1979-80 - Whether where assessee was residing in accommodation which was owned by him and was not incurring any expenditure on payment of rent, he would not be entitled to claim benefit of section 10(13A) - Held, yes FACTS The assessee was living in the residential house owned by him. In the return filed for the relevant assessment years, the assessee claimed exemption to the extent of Rs. 4,800 under section 10(13A). The ITO disallowed the claim of the assessee on the ground that the assessee was residing in his own house and was not paying any rent. The Commissioner (Appeals) as well as the Tribunal accepted the claim of the assessee holding that the assessee was entitled to exemption of Rs. 4,800 under section 10(13A). On reference : HELD From a reading of the clauses (a ) and (b) of the Explanation to section 10(13A), which were inserted by the Taxation Laws (Amendment) Act, 1984 with retrospective effect from 1-4-1976, it is absolutely clear that in order to claim deduction under sub-section (13A) of section 10, the assessee should not reside in the accommodation which is owned by him and further, the expenditure should have been actually incurred on payment of rent. [Para 10] As in the instant case, the assessee was residing in his own house and there was no payment of rent, the provisions of sub-section (13A ) of section 10 were not attracted. Thus, the Tribunal had committed error in granting exemption to the assessee under section 10(13A). [Para 12] CASES REFERRED TO CIT v. Justice S.C. Mittal [1980] 121 ITR 503/ 3 Taxman 221 (Punj. & Har.) [Para 5], CIT v. B.R. Tuli[1980] 125 ITR 460 (Punj. & Har.) [Para 5], CIT v. M.S. Gujral, Chief Justice [1980] 125 ITR 655/3 Taxman 364 (Punj. & Har.) [Para 5] and CIT v. K. Chockalingam [2001] 248 ITR 557/ 118 Taxman 657 (Mad.) [Para 11]. Shambhoo Chopra for the Applicant. ORDER R.K. Agrawal, J. - The Income-tax Appellate Tribunal, Allahabad, has referred the following question of law under section 256(1) of Income-tax Act, 1961, (hereinafter referred to as 'the Act') for opinion to this Court : "Whether,…

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