Arun Kumar And Ors. vs Union Of India (Uoi) And Ors.

The Supreme Court upheld the validity of Rule 3 of the Income Tax Rules, 1962, as amended by the Income Tax (Twenty-second) Amendment Rules, 2001, stating that it is consistent with Section 17(2) of the Income Tax Act, 1961. The Court found that the amended rule does not violate Article 14 of the Constitution, as it provides a rational basis for the valuation of perquisites. Consequently, the Court dismissed the appellants' challenge against the amendment, affirming the legality of the revised method of computing perquisites for taxation purposes.