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2014 (1) TMI 1270 - ITAT KOLKATAFringe benefit u/s 115WB(2)(D) and u/s 115WB(2)(B) of the Act - Provision of free transport towards airport pickup and drop for airline crew members - Cost of transport charges for visiting guests - Night dropping of employees – Held that:- The Central Board of Direct Taxes in Circular No. 8 of 2005, dated August 29, 2005 clearly specifies that there must be an employer-employees relationship for the purpose of treating the expenses as fringe benefit - the airline crew members for whom the airport pick-up and drop has been incurred are not employees of the assessee, the expenditure cannot be treated as liable for fringe benefit tax under section 115WB(2)(D) of the Act. Also the visiting guests cannot be treated as employees of the assessee and the complimentary pick-up and dropping charges incurred on account of visiting guests also do not fall under the purview of the fringe benefit tax under section 115WB(2)(B) of the Act - In respect of the night dropping of the employees the shift ends in the early morning at 1.30 am, the same being on account of pick-up and drop of the employees from their residence to the place of work and returning them to their residence is not liable to be treated as fringe benefit also in view of the Circular issued by the Central Board of Direct Taxes in Circular No.8 of 2005 dated August 29, 2005 – Decided in favour of Assessee.
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