Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (5) TMI 933 - AT - Income TaxComputation of value of Fringe benefits – Whether the expenses incurred on running and maintenance of motor car being car fuel, oil and lubricants, rent and taxes, insurance on motor car, service charges and driver salary, given on hire as liable to fringe benefit tax or not – Held that:- The contention of the assessee is accepted that as per Circular No. 8/2005 dated 29.08.2005 issued by CBDT, employer and employee relationship is a prerequisite for the levy of FBT u/s 115 WB of the Act - when employer and employee relationship is a prerequisite condition for levy of FBT, then value of FBT is to be determined on the basis of presumptive method to be applied to certain heads of expenditure as a measure/indicator of fringe benefit. AO has calculated total value of fringe benefits by following the tax audit report as against the returned value of fringe benefit which was taken by the assessee – neither the assessee nor the revenue has placed the copy of tax audit report on the basis of which the AO calculated the higher value of fringe benefit as against the returned value by the assessee due to the reasons best known to them – the matter is required to be remitted back to the AO for fresh adjudication as to the proper determination of the value of fringe benefit - Decided in favour of Assessee.
|