where the vires of Section 17(2)(viii) of the Income Tax Act, 19611 or Rule 3(7)(i) of the Income Tax Rules, 19622, or both, were challenged. 2. Section 17(2)(viii) of the Act includes in the definition of ‘perquisites’3, ‘any other fringe benefit or amenity’, ‘as may be prescribed’.4 Rule 3 of the Rules prescribes additional ‘fringe benefits’ or ‘amenities’, taxable as perquisites, pursuant to Section 17(2)(viii). It also prescribes the method of valuation of such perquisites for taxation purposes. Rule 3(7)(i) of the Rules stipulates that interest-free/concessional loan benefits provided by banks to bank employees shall be taxable as ‘fringe benefits’ or ‘amenities’ if the interest charged by the bank on such loans is lesser than the interest charged according to the Prime Lending Rate5 of the State Bank of India6. 3. Section 17(2)(viii) and Rule 3(7)(i) are challenged on the grounds of excessive and unguided delegation of essential legislative function to the Central Board of