1982 (3) TMI 99

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....charged to its employees on the loans advanced for construction of house. Thus, the assessee enjoyed a concession which is to be treated as a perquisite. Thus, the ITO added 5 1/2 per cent interest as perquisite which came to Rs. 1,727. In appeal, the AAC held that as per section 17(2)(iii) of the Income-tax Act, 1961, perquisite includes value of any concession or amenity granted or provided free of cost or at concessional rate by any employer to an employee whose income under the head "Salaries", exclusive of the value of all benefits or amenities not provided for by way of monetary payment exceeds eighteen thousand rupees. The LIC advances loans to the employees at a concessional rate of 5 per cent whereas it charges an interest of 10 1/....

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....by a company to an employee being a person who has a substantial interest in the company ; (c) by any employer (including a company to an employee to whom the provisions of paragraphs (a) and (b) of this sub-clause do not apply and whose income under the head 'Salaries', exclusive of the value of all benefits or amenities not provided for by way of monetary payment, exceeds eighteen thousand rupees." The assessee comes under item (c). The assessee has been provided the loan at a concessional rate. The question is whether that could be treated as a perquisite. An identical question came up for consideration before the Madras High Court in Addl. CIT v. Late A.K. Lakshmi. The question whether the non-liability to pay interest would be a ....