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2012 (2) TMI 30 - ITAT MUMBAIFringe Benefit Tax – residential accommodation provided to M.D. - Deposit of Rs 5 crore made for the licence to use & occupy the property – Revenue considering notional interest on such deposit under FBT – Held that:- The provision relating to the computation of the value of the fringe benefits is contained in section 115WC. It is a settled principle of law that where the computation provision fails, the charging section cannot be effectuated. In present case, AO has adopted 9% rate which was generally available on FDRs, one can argue that this rate may be 20% which was applicable to ICD. Therefore, it is held that though the provision of security deposit is definitely in the nature of fringe benefit under clause (a) of sub-section (1) of section 115WB, but in the absence of valuation rules, the same cannot be subjected to tax. Accordingly, order of CIT(A) is set aside and addition made is deleted – Decided in favor of assessee.
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