9911796707
TMI Blog1994 (1) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, 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 Employees House Building Advance Rates and the interest reimb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. K. Vaidya [1997] 224 ITR 186--I. T. R. C. Nos. 161 and 162 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) 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 specify in this behalf by notification in the Official Gazette, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ines 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 clearly opined that once sub-clause (vi) of clause (b) in Explana ..... X X X X Extracts X X X X X X X X Extracts X X X X
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