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2013 (8) TMI 71 - AT - Income TaxValidity of the levy of Fringe Benefit Tax (FBT) on the various fringe benefits deemed to have been allowed by the assessee - levy of tax vide order u/s. 115WE(3)- expenditure is on the maintenance of guest house - Held that:- It is only where and to the extent the guest house is used during the relevant year by the assessee's employees, that the impugned expenditure would stand to be covered u/s. 115WB(2)(K), and the said provision be said to be applicable. The total expenditure incurred during the year would therefore be required to be proportioned in the ratio of the user by the assessee's employees as against non-employees. The assessee succeeds partly, and the matter will travel to the AO to allow the assessee an opportunity to furnish the relevant details. Expenditure on hotel during travel, and motor car expenses, which are claimed by the assessee to have been incurred for the purpose of its business, leading to no benefit to the concerned employees. As evident, the same stand covered by the various decisions Tata Motors Ltd. [2013 (5) TMI 372 - ITAT MUMBAI], Tata Asset Management [2012 (6) TMI 137 - ITAT MUMBAI], Toyota Kirloskar Motor Pvt. Ltd [2012 (6) TMI 484 - ITAT, Bangalore] therefore, the same are not liable for the charge of FBT. Club expenses - Held that:- The assessee's only claim is that the club expenditure is incurred for the purpose of its business. The Revenue, however, does not dispute that, and neither is it the bone of contention between the two, so as to be relevant. What is relevant is whether the same nevertheless results in a provision of any benefit, direct or indirect, to the assessee's employees. The assessee being a company, the club expenses incurred would be so only for its employees and, therefore, in clear view fall to be covered u/s. 115WB(2)(N). The assessee's case, accordingly, is without merit - assessee's appeal is partly allowed.
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