Facts:
a)
Petitioner (‘All India Union
Bank O icers Federation’) filed a writ petition before the High Court
challenging constitutional validity of section 17(2)(viii) of the Income-tax
Act, 1961, read with Rule 3(7)(i) of the Income-tax Rules, 1962.
b)
Section 17(2)(viii) provides
the method for computation of perquisite value of interest free or concessional
loan provided by an employer to his employee on the basis of interest rate
charged by the State Bank of India (SBI).
c)
Petitioner challenged the
constitutional validity of aforesaid section by contending that it was unfair
to compare the rate of interest charged by the individual banks on the loans
advanced to their employees with the rate of interest o ered by the State Bank
of India as each bank fixed its own rate of interest, depending upon the
economies of their operation.
