T. N. C. RANGARAJAN, J.

( 1 ) THIS batch of writ petitions relate to the question of deduction of tax at source with reference to the income chargeable under the head salaries . Pleadings :

( 2 ) WRIT Petition No. 27804/1995 has been filed by the Officers in the Research and Development Division of Bharat Heavy Electricals Limited. (A Government of India Undertaking ). They obtained House Building Advance from H. D. F. C. , L. I. C. , and other Financial Institutions in respect of which monthly instalments are deducted from their salary. The difference between the rate of interest charged by the Financial Institutions and the rate of interest at which the House Building loans are generally sanctioned by the Company was reimbursed to the petitioners. On 23-3-1995, the Central Board of Direct Taxes (for short c. B. D. T. ) informed the Chief Commissioner of Income-tax, Hyderabad that where the employer directly bears a part of the interest burden of the employees by reimbursing a portion of the interest payable by the employee in respect of building loans, such reimbursement is taxable as income from salaries under Section 17 (2) (iii) of the Income-tax Act. This was forwarded to

Click Here to Read the rest of this document