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2014 (6) TMI 696 - AT - Income TaxFringe Benefit Tax (FBT) - conveyance expenses met out by the assessee for its employees from place of work to place of residence and vice versa – Held that:- Benefit is exempt from FBT from assessment year 2007-08 onwards - The view of the AO has not been accepted by the CIT(A) as amended of section 115WD(3) has been brought vide Finance Act 2006 and thus the contention of the AO that the aforesaid benefit is exempt from FBT from A.Y. 2007-08 on wards only is totally erroneous and untenable – CIT(A) rightly deleted the addition of ₹ 2,42,87,175/ made by the AO – thus, there was no reason to interfere in the order of the CIT(A) – Decided against Revenue. Computation of total value of Fringe Benefit – Whether the assessee is entitled to include only 5% of the conveyance expenses for FBT purposes - Held that:- CIT(A) has noted that out of the gross income of ₹ 271,56,55,082/-, the assessee has earned ₹ 269,19,26,534/- from BPO services - This particular fact establishes that the assessee has to be considered as a company engaged in production of computer software - only 5% of the conveyance expenses should be taken for FBT purposes – thus, there was no infirmity in the order of the CIT(A) in upholding the claim of the assessee – Decided against Revenue.
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