TMI Blog2014 (10) TMI 578X X X X Extracts X X X X X X X X Extracts X X X X ..... f expenditure incurred by the assessee in extending fringe benefits to its employees was not solely for the purpose of business - The expenditure incurred is both for the purpose of business and for the purpose of agriculture - The provisions contained in Chapter XII H of the Income Tax Act have to be read subject to Section 10 of the Income Tax Act – the order of the Tribunal is to be set aside – ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 115-0 of the Act. 3. Whether the Tribunal below committed substantial error of law in upholding the inclusion of expenses in the taxable value of fringe benefit in the case of an assessee engaged in the business of growing, manufacturing and sale of tea although expenses included were not allowed as deduction when computing the total income under the Act ? Heard Mr.Prabir Kumar Bho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tration (a) amounting to ₹ 300/- include ₹ 100/- spent by the employer on account of fringe benefits made available to its employees. In that case, 40% of the aforesaid sum of ₹ 100/- would also be includible in illustration (b). Therefore, the question posed before us has really been answered by the illustration given by the Apex Court in the aforesaid judgment. It cannot be dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ' in the case of Doom Dooma (supra). The revenue is interested in contending as would appear from the impugned orders that the expenditure on account of fringe benefit cannot be reduced to 40% for the purpose of computing fringe benefit tax. If that is done, the result would be that the agricultural income itself would become liable to tax, which is not permissible under sub-Section 1 of Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : Question no.1 is in the negative and in favour of the assessee; and Question no.3 is in the negative and in favour of the assessee. So far as question no.2 is concerned, as it arises out of the reasoning given in the impugned order passed by the Tribunal on the issue decided, the same is redundant and need not be answered. Therefore, the appeal is allowed. Urgent certified copy of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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