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2014 (11) TMI 290 - AT - Income TaxExpenses incurred wholly for business purpose not excluded - Addition of various expenses not incurred for collective benefit of employees to value of fringe benefits u/s 115 WB (2) – Held that:- Before AO and CIT(A) assessee contended that all the expenses have been incurred for the purpose of business and were having no collective benefit to the employees but however the contention of the Assessee was not accepted by the AO as he relied on the deeming provisions of s. 115WB(2) of the Act – in M/s TOYOTA KIRLOSKAR MOTOR PVT LTD Versus ADDL COMMISSIONER OF INCOME TAX [2012 (6) TMI 484 - ITAT, Bangalore] it has been held that the deeming fiction u/s 115WB(2) is not attracted if the expenditure does not result in any benefit to employees - even in the circumstances provided in subsection (2) of s. 115WB of the Act "fringe benefits" can be deemed to have been provided by the employer to his employees, only in cases where the prescribed expenditure is incurred in consideration for employment – thus, no addition on account of FBT can be made – Decided in favour of assessee.
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