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2017 (4) TMI 361 - HC - Income TaxFBT - nature of expenses incurred by the assessee / employer for the services / activities - deemed Fringe Benefits provides to employees as per the provisions of Section 115WB(2) Clause A to Q of the I.T. Act, 1961 - Held that:- When the language of Section 115WA and 115WB is clear and unambiguous and even the intention of the legislature while enacting sections 115WA and 115WB(2) is very clear i.e. with respect to the “deemed fringe benefits”, neither there is any scope for either literal and/or purposive interpretation nor there is any occasion to consider the intention and for that purpose the speech of Hon’ble Prime Minister in the Parliament. At the cost of repetition it is observed that in absence of challenge to the constitutional validity of either sections 115WA or 115WB, both the aforesaid provisions are required to be read as they are. As per the cardinal principle of law, the provisions are required to be read, more particularly taxing provisions are required to be read not only as they are but even while reading such provisions one has to see that the provisions do not become nugatory and/or otiose. Considering the provisions of Sections 115W, 115WA, 115WB(1) and 115WB(2) as they are, the CBDT has rightly clarified that with respect to the expenses incurred by the assessee / employer for the services / activities referred to in clause (A) to (P) of subsection (2) of Section 115WB, there shall be FBT, is absolutely just and proper and in consonance with the provisions of the Statute more particularly sections 115WA, 115WB and 115WC. The clarifications made by the CBDT in the impugned circular cannot be said to be contrary to the provisions of the Statute more particularly Sections 115W, 115WA, 115WB(1) and 115WB(2). Under the circumstances, the challenge to the impugned circular fails and it is held that the FBT is leviable on the expenses referred to in clauses (A) to (P) of subsection (2) of Section 115WB as they are deemed to be the fringe benefits deemed to have been provided by the employer to his employees. Under the circumstances, the petitions deserve to be dismissed and are, accordingly, dismissed. Estimation of FBT - Held that:- Fringe Benefit is required to be valued as per section 115WC(1) of the Act more particularly 20% of such expenses are to be treated as fringe benefits as per section 115WC(1) of the Act. Under the circumstances, learned Tribunal has materially erred in valuing the Fringe Benefit on the basis of the estimation.
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