1984 (3) TMI 115

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....mployer at a concessional rate of interest of three and a half per cent per annum. According to the ITO, the prevailing market rate of interest varied from 12 to 15 per cent per annum. He proceeded to treat the difference between 12 per cent being the market rate and three and a half per cent being the rate at which the interest was charged by the employer, namely, eight and a half per cent as a p....

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....mpany for the purpose of house building at low rate of interest would not constitute a perquisite. On behalf of the revenue, my attention was invited to another letter No. 200/133/83-IT (A-I), dated 7-12-1983 from the Board referring to the earlier letter dated 8-8-1977 stating that the loans given by the company for the purpose of house building at a low rate of interest would not constitute a pe....

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....ment and also when the AAC decided the appeal. During this period this Board's letter was in force. As observed by the learned judges of the Supreme Court in the case of Navnit Lal C. Javeri v. K. K. Sen, AAC [1965] 56 ITR 198 and again in the case of Ellerman Lines Ltd. v. CIT [1971] 82 ITR 913, the instructions issued by the Board under section 119 of the Act were binding on the authorities work....