Case Law Details
CASE LAWS DETAILS
DECIDED BY: HIGH COURT OF MADHYA PARDESH,
IN THE CASE OF: All India Punjab National Bank Officers’ Association Vs. Chairman- Cum- Managing Director, Punjab National Bank, APPEAL NO: Writ Petition Nos. 3222, 3275, 3343, 3489, 3658, 3749, 3752,3837,3951, 3957,3958, 3959,3962, 3963,3973, 4003, 4012,4013,4015, 4181,4242, 4243,4487, 14056 of 2008 and 3656, 3659 and 3660 of 2009, DECIDED ON November 30, 2009
RELEVANT PARAGRAPH
2. The petitioner, All India Punjab National Bank Officer’s Association, is aggrieved by the deduction of tax at source by the authorities of the bank, respondents Nos. 1 to 3 in respect of interest-free loans given to the members of the Officer’s Association. Respondents Nos. 1 to 3 have issued a Circular for taxing the said loans as the rate of interest being charged from the members of the Association is less than the lending rate of the State Bank of India. It is contended that rule 3 of the Income-tax Rules, 1962, (for short “the 1962 Rules”) has been amended by Notification No. 271 of 2007 dated November 7, 2007, and is made applicable for the assessment year 2008-08, that is the financial year April 1, 2007 to March 31, 2008. it is urged that vide circular dated January 24, 2008, respondents Nos. 1 to 3 have included loan available at concessional rate of interest under the head “Salaries” by treating such loan as a perquisite in case it is less than the SBI lending rate.
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Sir,
Need clarity on what does SBI Rate means ….. is it the rate at which SBI lends a particular product or is it the PLR of SBI.
If it is SBI PLR…. will it now get replaced with SBI Base Rate ? please help