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2016 (5) TMI 62 - AT - Income TaxFBT - Entitlement to avail of the concessional rate of tax prescribed under rule 8 of the Income-tax Rules to determine the taxable value of fringe benefits - Held that:- What has been allowed as the business expenditure (i.e. the expenditure that are subjected to fringe benefit tax) is only to the extent of 40 per cent. thereon in accordance with rule 8 of the Income-tax Rules, 1962. Hence logically the said business expenditure for the purpose of fringe benefit tax also should be considered at only 40 per cent. of the same as against 100 per cent. Assessee-employer shall be entitled to claim relief at 40 per cent. of taxable value of fringe benefits as against 100 per cent. determined by the learned Assessing Officer and accordingly we direct the learned Assessing Officer to recompute the value of fringe benefits in accordance with rule 8 of the Income-tax Rules. - Decided in favour of assessee
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