9911796707
TMI Blog1986 (8) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... f interest of 4 per cent charged by the employer on this loan was a concessional rate of interest, the fair rate of interest was 8 per cent and, therefore, the difference between interest at the fair rate of 8 per cent, which ought to have been charged, and the interest actually charged by the employer was a 'perquisite' within the meaning of sub-clause (iii) of clause (2) of section 17 of the Income-tax Act, 1961. The ITO, therefore, valued the perquisite on this account at Rs. 5,028 for the assessment year 1978-79, Rs. 2,542 for the assessment year 1980-81 and Rs. 2,004 for the assessment year 1981-82. On appeal, the AAC held that in the first place, according to the circular of the employer outlining the terms and conditions under which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee and, consequently, there was no 'perquisite' liable to assessment under section 17(2)(iii). 4. On the other hand, no one turned up on behalf of the assessee when the appeals came up for hearing on 29-7-1986. There was also no application for adjournment of the date fixed for hearing. The appeals have, therefore, to be decided on the basis of the material on the record and the submissions of the learned departmental representative, Shri Raju. 5. We have carefully considered the submissions of the learned departmental representative, Shri Raju, and the material on the record. As against the decisions of the Tribunal relied upon by the learned departmental representative, Shri Raju, there are also the decisions of the Tribunal in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the provision made by the Taxation Laws (Amendment) Act, 1984 was with a view to subject the salaried taxpayer to tax on the perquisite represented by the loans granted by the employer interest-free or at concessional rates of interest for certain purposes and as a measure of further relief to the salaried taxpayers this provision was being repealed. This clearly shows that even according to the view of the Government but for the provision introduced by sub-clause (vi) of clause (2) of section 17 inserted by the Taxation Laws (Amendment) Act, 1984, the difference between interest at the notified rate and the interest actually charged by the employer on loans granted to the employees for certain purposes was not a perquisite liable to tax. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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