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2013 (4) TMI 793 - ITAT MUMBAIDisallowance of expenditure - expenditure subject to FBT - Held that:- As in the case of Hansraj Mathuradas [2012 (10) TMI 300 - ITAT, MUMBAI] relying upon CBDT Circular No.8/2005 dated 29/8/2005 it was held that once FBT is levied on expenses incurred, it follows that the same are treated as fringe benefit provided by the assessee as employer to its employees and the same have to be appropriately allowed as expenditure incurred wholly and exclusively by the assessee for the purpose of its business. No contrary decision has been brought to our notice in this regard. Therefore, respectfully following the aforementioned decision we hold that if the aforementioned expenditure were subjected to FBT, then disallowance cannot be made. However, to verify that whether or not these expenditure were subjected to FBT, we restore the issues raised in these appeals to the file of AO with a direction to verify the contention of the assessee that whether or not impugned expenditure were subjected to FBT. If those expenditure were subjected to FBT then no disallowance can be made and the claim of the assessee should be accepted in its entirety.
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