Law:

Section:

Section 144A, read with section 263, of the Income-tax Act, 1961, read with rule 3 of the Income-tax Rules, 1962 - Joint Commissioner, power to issue directions in certain cases - Assessment years 1982-83 to 1996-97 - Whether there is no provision in Act under which Additional Commissioner can recall orders under section 144A - Held, yes - Whether power to set aside an order of the IAC or Deputy Commissioner is under section 263 and said power can only be exercised after giving opportunity of hearing to petitioner - Held, yes - Whether under section 144A, IAC has power to fix fair rental value of accommodation provided to employees - Held, yes FACTS The petitioner-company was engaged in the business of manufacture and sale of sugar in its three manufacturing units. The aforesaid units of the petitioner were located in remote areas where the township was small. There was no residential accommodation available in the nearby areas for the officers and workmen of those units. Therefore, the petitioner constructed residential colonies to provide accommodation to various categories of its employees and also provided furniture with the accommodation. Under the Central Wage Board (Sugar) standard rent had been fixed for different categories of residential accommodation and the petitioner was obliged to provide accommodation to its employees only on such standard rent as fixed by the Wage Board. The Assessing Officer did not accept the rent of accommodations as fixed by the Central Wage Board as the fair rent and proposed to determine the rent treating the accommodation as unfurnished at the rate of 10 per cent of the salary of the employees under rule 3(a)( iii). On appeal, the Inspecting Assistant Commissioner and the Deputy Commissioner determined the fair rental value for the relevant assessment years. The petitioner's employees for the relevant assessment years were assessed by treating the aforesaid value of the quarters and furniture as fixed by the IAC/Deputy Commissioner in their orders and the assessment were completed, accordingly. The petitioner-company approached the respondent-Additional Commissioner for the usual direction to fix the fair rental of…

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