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2019 (10) TMI 517 - AT - Income TaxFringe benefit tax - addition of expenses relating to supply of electricity at concessional rates to employees - HELD THAT:- The supply of electricity by the assessee to its employees at concessional rates would certainly be perquisite in terms of section 17(2) of the Act. However, it is incumbent upon the assessee to furnish evidence that the benefit given to employees in the form of supply on concessional rates is treated as perquisite and due taxes has been deducted at source. In the absence of such evidences, no fault can be found with the finding of the authorities below. Assessee during the course of hearing prayed that the issue may be restored to the file of the A.O. who can verify this fact by conducting requisite enquiries. D.R. strongly opposed this submission and stated that assessee was provided with sufficient opportunity in this regard. It will give second innings to the assessee without any reasonable cause. We have given our thoughtful consideration to the submissions made by the assessee and the Ld. D.R. The law is well settled that levy of tax should be at the right hand. In the case in hand, we have held that supply of electricity to its employees at a concessional rate would be a perquisite for the employees. Under these circumstances, the revenue is at liberty to proceed against the assessee for non-deduction of tax at source in the event, if the employees have offered the benefit for taxation in their respective returns, the assessee would not be liable for the FBT. It would be tantamount to double taxation. We therefore, set aside the orders of the authorities below and restore the issue to the file of the A.O. for verifying whether the employees offered such benefit in their returns, if any. - Assessee grounds raised in this appeal are allowed for statistical purposes.
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