H.R.A. ISSUE BY EMPLOYER IS IT ILLEGAL??????

HELLO EVERYONE,

                               MY QUERY REGARDING HRA IS THAT AN EMPLOYER PROVIDE  QUARTER AND DEDUCT THE HRA FROM SALARY......THIS PART IS FINE.......NOW THE EMPLOYER SHOWING THAT HRA IN OUR TAXABLE SALARY .............AND WE ARE PAYING THE TAX ON HRA WHICH WAS RECIEVED BY THE EMPLOYER.............SO I WANT TO ASK IS IT RIGHT PRACTICE TO DO FOR A BIG ORGANISATION...................AND IF IT IS WRONG THAN ? WILL INCOME TAX DEPARTMENT DO ANYTHING IF THEY COME TO KNOW ABOUT IT? AND THE OTHER THING THAT THEY ARE ALSO ADDING AMOUNT IN OUR SALARY AS PERQUISITIES WHICH IS ALSO TAXABLE.................WORST PART IS THAT THE EMPLOYEE WHO ARE ALLOWED TO TAKE HRA AND CHOOSE THEIR OWN HOUSE ON RENT OR OWNED ARE ENJOYING THE BENEFIT OF GOOD HRA & TAX EXEMPTION ALSO.