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2014 (10) TMI 68 - HC - Income TaxBusiness of growing manufacturing and sale of tea - Rule 8 of the Income-tax Rules 1962 – Computation of value of fringe benefit – Inclusion of expenses in the taxable value of fringe benefit - Held that:- The applicability of Rule 8 in the matter of arriving at the value of fringe benefit for the purpose of tax – following the decision in CIT vs. Doom Dooma India Ltd. [2009 (2) TMI 9 - SUPREME COURT] - the amount of expenditure incurred by the assessee in extending fringe benefits to its employees was not solely for the purpose of business - The expenditure incurred is both for the purpose of business and for the purpose of agriculture - The submission made by Mrs. Gutgutia that the expenditure on account of fringe benefits has already been taken into account is not correct - once that is done 40% of the net profit and loss has to be worked out which shall be chargeable to tax - If that is done, the result would be that the agricultural income itself would become liable to tax, which is not permissible under sub-Section 1 of Section 10 of the Income Tax Act – Decided in favour of assessee.
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