Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (8) TMI 751 - AT - Income TaxFringe Benefits - additions to the fringe benefits computation - Addition of Medical Aid - where perquisites /benefits which are fully attributable to the employee and are taxed in their hands, would be continued to be taxed under the existing provisions of section 17(2) of the Act. Only in case where the benefits are usually enjoyed collectively by the employees and cannot be attributed to an individual employee, they shall be taxed in the hands of the employer - Held that:- specific item of perquisite, which is normally taxable in the hands of individual employee, cannot be subjected to FBT, only for the reason that the same is exempt in the hands of the employees, when an item which is to be treated as a perquisite is exempt in the hands of the individual employee, the same, could not be subjected to FBT Entertainment Expenses inside the office Premises - assessee explained that the amount represented expenditure incurred for providing snacks/refreshments to customers within the office premises and therefore, the same is to be excluded from the fringe benefit as per the provisions of section 115WB(2)(B)(i). contention was rejected by the Assessing Officer on the ground that the exemption was provided only for expenditure incurred on his employees; whereas the assessee provided snacks/refreshments to its customers and accordingly, treated as fringe benefit by the Assessing Officer and brought to tax - said reason, without substance, since the basis of fiction contained in section 115WB(2) is that certain expenses, if incurred, shall be deemed to have been provided by the employer to his employees. Therefore, if certain species of expenditure incurred on the employees are excluded from the purview of FBT, the same exclusion will also hold good for other persons, appeal allowed Conference fees - expenditure was incurred for the assessee's employees to attend conference. Apart from these two receipts, the assessee has not produced any factual evidence to show that these are expenses incurred as fees for participation by its employees in a conference - if these amounts were found to be participation fee for attending conference by the assessee's employees, the same should not be included as fringe benefit - Matter remanded to Assessing Officer to verify the genuineness of the claim.
|