2007 (7) TMI 148

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....ounsel for the petitioners, and Mr. Sanjay Lal, learned counsel for the respondents. 2. In this writ petition, the petitioners have prayed for a declaration that rule 3 of the Income-tax Rules, 1962, as amended by the Income-tax (Amendment) Rules, 2001, is ultra vires, invalid inasmuch as it runs contrary to the provisions of section 17(2) of the Income-tax Act, 1961, and is also discriminatory....

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....Rules cannot be held arbitrary, discriminatory or ultra vires article 14 of the Constitution nor inconsistent with the parent Act (section 17(2) (ii)), it is in the nature of a 'machinery provision' and applies only to the cases of 'concession' in the matter of rent respecting any accommodation provided by an employer to his employees. Whether or not Parliament could have in the exercise of legisl....