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2020 (10) TMI 91 - HC - Income TaxDeemed expenditure chargeable to fringe benefit tax u/s 115WB(2)(H) - Principal component of the EMI payment for cars purchased on lease finance basis - Whether the Tribunal was correct in allowing relief to assessee, when the expenses are not by any stretch of imagination, in the nature of inhouse training expenses whereby the relaxation provided in Question No.51 of FAQ in Circular No.8/2005 dated 29.08.2005 of CBDT would not be available to the assessee? - HELD THAT:- As from conjoint reading of provisions of Section 115WB(2)(C) and Circular No.8/2005 dated 29.08.2005, it is evident that expenditure incurred in imparting in-house training to employees is excluded from the ambit of fringe benefit tax. Other incidental expenses such as boarding, lodging, traveling and conveyance expenses would be liable to fringe benefit tax. Assessee had produced the documents before the authorities to show that it has incurred expenses for imparting training to its employees. Tribunal has rightly held that there was no fringe benefit in in-house training expenditure. Tribunal, on the basis of material available on record, has also recorded a finding that repayment of loan obtained for purchase of acquisition of assets cannot be brought within the purview of fringe benefit tax and it is only actual running and maintenance expenditure of the cars taken on finance lease which is liable for fringe benefit tax. The aforesaid finding of fact does not suffer from any perversity. So far as in-house expenses incurred by the assessee for training of the employees cannot be subjected to fringe benefit tax as the finding on the aforesaid issue was held in favour of the assessee for the Assessment Year 2008-09 by the Commissioner of Income Tax (Appeals) which was accepted by the revenue. - Decided against revenue.
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