BHEL WORKERS UNION Vs. UNION OF INDIA

JUDGEMENT

(1.) In these cases, appellants have challenged the validity of Rule 3 of the Income Tax Rules, 1962, as amended by the Income Tax (Twenty-second) Amendment Rules, 2001 (hereinafter referred to as "the Rules") which amended the method of computing valuation of perquisites under Section of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). According to the appellants, amended Rule 3 is inconsistent with the parent Act and also ultra vires Article 14 of the Constitution.

(2.) Writ petitions filed by the appellants herein have been dismissed by the High Court, aggrieved against which the present appeals have been filed.

(3.) The amended notification was the subject-matter of appeals in this Court in the case of Aran Kumar and Ors. v. Union of India and Ors.,2006 12 ITCL 188. A three Judge Bench of this Court did not strike down Rule 3 of the Rules but read down the rule to make it in line with Section of the Act.