9911796707
TMI Blog1998 (8) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... Building Advance Scheme framed by the third respondent company and the actual interest paid to the H. D. F. C. on the house building loan arranged by the third respondent company for the petitioners. According to the petitioners, they are all permanent employees of Bharat Heavy Electricals Limited. The said company has got House Building Advance (H.B.A.) Scheme for purchase of house or flat. Every employee who has not less than five years of continuous service is entitled to avail of this house building advance. The interest to be charged on the loan is at the rate at which the Government charges for such class of loans. Option is given to the employee to approach the LIC/HDFC to raise loan, in which case the company will grant subsidy to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax is to be recovered on such amount as per the provisions of the Act. The circular is said to have been passed after due consideration with the Commissioner of Income-tax and the concerned Income-tax Officer. The petitioners have no other alternative appropriate forum to seek redressal of their grievance as tax is likely to be deducted at source on the amount of interest subsidy paid directly by the company to the HDFC in regard to the loan availed of by the petitioners under the House Building Advance Scheme. The said subsidy is not a "perquisite" within the meaning of, section 17(2)(iv) of the Income-tax Act, 1961, and such deduction is wholly without jurisdiction. The contesting respondent, namely, Bharat Heavy Electricals Limited/ t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o him, the third respondent has only performed the statutory obligation. I have carefully considered the rival submissions. There is no dispute that the third respondent-company is having a scheme called House Building Advance Scheme for purchase of house or flat. The said scheme is intended only for the employees of the third respondent-company and several employees who had completed five years of continuous service are entitled to avail of the said House Building Advance Scheme. No doubt, if the company itself provides the entire amount for the purchase of the house or flat, the rate of interest is less compared to the interest rate in respect of the loans being sanctioned by the LIC/HDFC. However, if any employee prefers to approach th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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