TaxTMI 
2026 (11) TMI 412
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....of the Court was made by G. Arul Murugan, J.) This writ petition is filed seeking a declaration to declare Rule 3(7)(i) of the Income Tax Rules and also impugned sub-para 15 of Bulletin 53/2008 issued by the 4th respondent as unconstitutional, ultra vires the Income Tax Act and, therefore, null and void. 2. The provisions of Section 17(2), 17(2)(iii), 17(2)(vi), 17(2) (viii) of the Act and Rule 3(7)(i) of the Income Tax Rules, 1962 (in short 'the Rules') were under challenge before this Court in separate writ petitions and a Division Bench of this Court, heard the entire batch of writ petitions analogously and by common judgment dated 20.04.2026 in the case of All India Union Bank Officers & Others vs. Union of India, rep. By its Secr....
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....r levying tax on interest free/concessional loans as a fringe benefit is within the rule- making power under Section 17(2)(viii) of the Act. Section 17(2)(viii) itself, and the enactment of Rule 3(7)(i) is not a case of excessive delegation and falls within the parameters of permissible delegation. Section 17(2) clearly delineates the legislative policy and lays down standards for the rule-making authority. Accordingly, Rule 3(7)(i) is intra vires Section 17(2)(viii) of the Act. 26 AIR (1967) SC 1895. Section 17(2)(viii) does not lead to an excessive delegation of the 'essential legislative function'. II. Is Rule 3(7)(i) arbitrary and violative of Article 14 of the Constitution insofar as it treats the PLR of SBI as the benchmark? ....
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....ation. Rule 3(7)(i) is based on an uniform approach and yet premised on a fair determining principle which aligns with constitutional values. 34. It is also apposite to note that when it comes to uniform approach the laws relating to fiscal or tax measures enjoy greater latitude than other statutes. The Legislature should be allowed some flexibility in such matters and this Court would be more inclined to give judicial deference to legislative wisdom. Commercial and tax legislations tend to be highly sensitive and complex as they deal with multiple problems and are contingent. This Court would not like to interfere with the legislation in question, which prevents possibilities of abuse and promotes certainty. It is not iniquitous, ....