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2012 (8) TMI 648 - AT - Income TaxFringe Benefit Tax – whether the mere incurrence of the expenditure listed in Clauses (A) to (Q) of section 115WB(2) is enough to trigger the deeming prescription contained in the section or that it is further required to be established that specified expenditure has been incurred on account of consideration for employment so as to attract levy of FBT contemplated in section 115WA(1) – Revenue contending levy of FBT in respect of expenditure on travelling of non-employees i.e. customers/outsider placing reliance on Circular No. 8 of 2005 - Held that:- It is evident that the interpretation sought to be advanced by the Revenue is not borne out of the statutory provisions. Circular No. 8 of 2005 seeks to enlarge the scope of levy of FBT, which is not supported by the language of the statute. Circulars issued by CBDT cannot override the provisions of the Act. Therefore, expenses prescribed therein are liable to be considered as fringe benefits only to the extent the same are incurred in consideration for employment. Levy deleted FBT on insurance premium paid under Group Accident Policy – assessee contending non levy on ground of it being expenditure on employees welfare arising out of statutory obligation or to mitigate occupational hazards - Held that:- CIT(A) rightly observed that impugned expenditure is not on account of a statutory obligation and, therefore, the same does not fall within the exceptions provided in the Explanation to section 115WB(2)(E) – Levy confirmed. FBT on the reimbursement of medical expenses to the extent of Rs 15,000/-. – Held that:- Medical reimbursement is taxable as perquisite in the hands of individual employees and merely because grant of such exemptions, same cannot be said to be a fringe benefit for the purposes of Chapter XII-H. Levy deleted. FBT on part of the expenses under the head depreciation and expenses on Aircraft and Club expenses, disallowed in the assessment finalized u/s 143(3) for personal in nature – Held that:- We remand the matter back to the file of the Assessing Officer who shall rework the liability of FBT on such dis-allowable expenses in accordance with the clarification issued by the CBDT in its Circular No. 8 of 2005 – Decided partly in favor of assessee
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