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2015 (7) TMI 443 - AT - Income TaxExemption u/s 115WB - Fringe benefits Tax - FBT - Disallowance of expenses - Held that:- CIT(A) has observed that the action of the AO in treating the entire amount of expenses booked under the second category was not justified as these expenses were primarily in respect of car hire facilities for the employees during the weekends for which a separate arrangement was made as a regular shuttle service from home to office and back. - CIT(A) has further observed that as distinct from the regular facility for commutation of the staff from home to office and vice versa, separate facility was provided in respect of the employees who had to stay on in the office beyond the prescribed office time and who could not avail the benefit of regular shuttle service for the employees. - CIT(A) has also noted that the Ld. Counsel of the assessee was asked to furnish the details of expenses that were in respect of commutation of staff from home to office hours or during the weekends and other car hire facilities. - CIT(A) has rightly held that 75% of the expenses booked in the category 2 in respect of which disallowance was made by the AO could be attributed to the facility of commutation offered by the assessee to its employees from home to office and back and hence were exempt under the Exemption Clause under section 115WB(3). In view of above, we are of the view that the Ld. CIT(A) has rightly confirmed the addition to the extent of 25% of such expenses - No infirmity in impugned order - Decided against Revenue.
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