Bhel Workers Union & Anr vs Union Of India & Anr

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, in relation to the computation of perquisites under Section 17(2) of the Income Tax Act, 1961. The Court noted that the previous judgment in Arun Kumar & Others vs. Union of India did not strike down Rule 3 but read it down to align with the Act. The Court declined to opine on the subsequent amendment to Section 17(2) introduced by the Finance Act, 2007, as it was not challenged in the present appeals, and disposed of the appeals accordingly.