TMI Blog1994 (1) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... was delivered by S. B. MAJMUDAR C. J.--In this writ petition, the petitioner-assessee has brought in challenge the refusal of the assessing authority to grant him exemption from computing taxable income of an amount of Rs. 3,556 being interest subsidy. The assessing authority took the view that as a welfare measure, the company reimbursed the interest paid in excess of the Central Government Emp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority, who in exercise of the power under section 89(1) of the Act (sic), dismissed the revision by holding that there was no reason to interfere with the order under revision. That is why the assessee is before us. The contention canvassed by learned counsel for the petitioner assessee that the interest subsidy is not liable to tax, is fully covered by a decision of this court in CIT v. M. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Act, inserted by the Taxation Laws (Amendment) Act, 1984, where the employer has advanced any loan to an employee for building a house or purchasing a site or a house and a site or for purchasing a motor car, and either no interest is charged by the employer on such loan or interest is charged at a rate which is lower than the rate of interest which the Central Government may speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Explanation 2 to section 40A(5) of the Income-tax Act, which defines the term 'perquisite' for the purposes of the said section to include the perquisite value represented by interest-free loans or loans at concessional rates of interest, has also been deleted. [Sections 6(b) and 12(a) of the Finance Act.] " It becomes obvious by reading this circular that even the Central Board of Direct Taxes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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