High Court Validates IT Act Amendments on Housing Perks Valuation, Setting Population-Based Rates u/s 17(2)(ii.

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....HC upheld amendments to Section 17(2)(ii) of IT Act regarding valuation of accommodation perquisites. Court affirmed legislature's authority to create legal fiction through explanations and establish limited retrospective application from April 1, 2006. Amendments prescribe specific valuation rates (15%, 10%, 7.5%) based on city population per 2001 census. Determination of perquisite value involves calculating difference between prescribed percentage of salary and actual rent paid. Court rejected challenges based on Article 14 violations, finding amendments constitutionally valid. Regarding banks' liability as "assesses in default," matter left open for future determination. Revenue authorities directed to consider interim orders prohibiting TDS during petition pendency and practical implications for retired bank employees.....