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2010 (7) TMI 762 - AT - Income TaxValue of fringe benefits under s. 115WB(2)(H) - inclusion of Salary of drivers & Interest on loan taken for purchase of motor cars in the taxable value of fringe benefits - Held that:- in absence of specific provision laid down under clause. (H) to sub-section. (2) to s. 115WB of the Act, the AO was not justified in including the expenditure on payment of interest on loan taken for purchases of motor cars i.e., Rs. 3,11.580 to compute the fringe benefits. Every required related expenses like repairs, running (including fuel), maintenance of motor cars and the amount of depreciation thereon have been mentioned in specific wordings in the provision, hence the AO was not justified in including the interest expenditure incurred on loan taken for purchase, of motor cars for working out fringe benefits. For expenses incurred on payment of salary to drivers - running of motor cars is a wider term to include payment of salary to drivers. In the provisions laid down under cl. (H) "running" has been supplemented by wordings "including fuel" under brackets. It reflects the very aim and object of the Legislature as expenditure incurred on running of car besides other will also include fuel expenses. It is a common knowledge that for running of a car besides fuel a driver is also required. It may be a sell driven car or a driver is employed to drive the car. Thus expenditure incurred on payment of salary to driver will be included in computing the expenses on running of the car within the meaning of the provision laid down under section. 115WB(2)(H) - Partly in favour of assessee.
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