https://www.taxtmi.com/caselaws?id=6546 The SC upheld the validity of Rule 3 of the Income-tax Rules, 1962, as amended in 2001, which prescribes methods for computing valuation of perquisites under section 17(2) regarding rental accommodation provided by employers. The court held that the distinction between government employees and employees of companies/corporations constitutes reasonable classification based on intelligible differentia with rational nexus to the objective sought. The rule was found neither arbitrary nor discriminatory under Article 14, nor inconsistent with the parent Income-tax Act, 1961. However, the court clarified that Rule 3 operates as a machinery provision applicable only when there is actual concession in rent for accommodation provided by employers to employees. en-us Fri, 15 Sep 2006 00:00:00 +0530 Thu, 03 Jul 2025 10:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6546 The SC upheld the validity of Rule 3 of the Income-tax Rules, 1962, as amended in 2001, which prescribes methods for computing valuation of perquisites under section 17(2) regarding rental accommodation provided by employers. The court held that the distinction between government employees and employees of companies/corporations constitutes reasonable classification based on intelligible differentia with rational nexus to the objective sought. The rule was found neither arbitrary nor discriminatory under Article 14, nor inconsistent with the parent Income-tax Act, 1961. However, the court clarified that Rule 3 operates as a machinery provision applicable only when there is actual concession in rent for accommodation provided by employers to employees. Case-Laws Income Tax Fri, 15 Sep 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6546