2023 (9) TMI 693

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y Kumar For the Respondent : Sri Mr. M. Rama Krishna, learned counsel representing Mr. Gadi Praveen Kumar, Deputy Solicitor General of India, Adhi Venkateswara Rao ORDER: (PER THE HON'BLE THE CHIEF JUSTICE ALOK ARADHE) The petitioner-association, namely Airports Authority Employees' Union, has prayed for the following reliefs: "For the reasons stated in the accompanying affida....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of the case". 2. In this writ petition, the petitioner-association has assailed the validity of Section 17(2)(vi) of the Income Tax Act, 1961, as inserted by the Finance Act, 2001 (Act No. 14 of 2001) w.e.f., 01.04.2002). The petitioner-association also seeks to challenge the validity of Rule 3 of the Income Tax Rules, 1962, as substituted by the Income Tax (22nd Amendment) Rules 2001 by notif....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... charged by the employer on the amount of such loan or interest is charged at a rate lower than the rate of interest which the Central Government may, having regard to the rate of interest charged by it from its employee on loans for such purpose granted to them, specify in this behalf to notification in the official gazettee, an amount equal to - (a) in a case where such loans is advance....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....me Tax (22nd Amendment) Rules, 2001. The validity of the aforesaid provision has been examined by various High Courts. In P.N. TIWARI V. UNION OF INDIA (2003) 133 Taxman 482, the Allahabad High Court upheld the validity of Rule 3. Similarly, in BHEL EMPLOYEES' ASSOCIATION v. UNION OF INDIA [2003] 128 Taxman 309, a Division Bench of Karnataka High Court has upheld the validity of Rule 3. Similar vi....