Held that the assessee was a body or an undertaking controlled by the Central Government governed by the rules governing the service conditions of the employees of the Central Government. The assessee may be an instrumentality of the State for the purpose of article 12 of the Constitution of India. However, merely because the assessee was a body or undertaking owned or controlled by the Central Government, it could not be elevated to the status of the Central Government. The assessee could not claim that valuation of perquisites in respect of residential accommodation should be computed as in case of an accommodation provided by the Central Government. Therefore, entry 1 of Table 1 of rule 3 of the Rules would not apply to the assessee. (AY. 2010-11)
Indian Institute of Science v. Dy. CIT (2021) 438 ITR 400 / 204 DTR 329/ 322 CTR 217 (Karn)(HC).Editorial: Affirrmed in Indian Institute of Science v .Dy. CIT (2022) 446 ITR 418 (SC)
S. 17(2) : Perquisite-Valuation of perquisites- Salary – Deduction at source -Rent as per Rule 3-Accommodation provided by Central Government and State Government to its employees-Not applicable to undertakings controlled by Central or State Governments. [S. 15, 192, ITR, 1962, R. 3]