TMI Blog2010 (7) TMI 762X X X X Extracts X X X X X X X X Extracts X X X X ..... wordings in the provision, hence the AO was not justified in including the interest expenditure incurred on loan taken for purchase, of motor cars for working out fringe benefits. For expenses incurred on payment of salary to drivers - running of motor cars is a wider term to include payment of salary to drivers. In the provisions laid down under cl. (H) "running" has been supplemented by wordings "including fuel" under brackets. It reflects the very aim and object of the Legislature as expenditure incurred on running of car besides other will also include fuel expenses. It is a common knowledge that for running of a car besides fuel a driver is also required. It may be a sell driven car or a driver is employed to drive the car. Thus ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e words "repairs", "running" and "maintenance of motor cars" shall cover every expenses connected with use of motor cars in the business activities of the assessee. The AO accordingly added back 20 per cent of Rs. 8,31,311 to the total value of fringe benefits. The learned CIT(A) has upheld, this approach of the AO against which the assessee is in appeal. 4. In support of the ground the contention of learned Authorised Representative remained that under section 115WB(2)(H) of the Act interest paid on the borrowed amounts to the financier who financed the purchase of car has not been mentioned. Likewise salary paid to drivers cannot be included in the running and maintenance of motor cars to cover expenses connected with use of motor cars. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B(1) . (2) The fringe benefits shall be deemed to have been provided by the employer to his employees, if the employer has, in the course of his business or profession (including any activity whether or not such activity is carried on with the object of deriving income, profits or gains) incurred any expenses on, or made any payment for the following purposes, namely (A) to (G) ** ** ** (H) repair, running (including fuel), maintenance of motor cars and the amount of depreciation thereon. (I) to (Q) ** ** ** (3) ** ** **" We thus while setting aside orders of the lower authorities in this regard, direct the AO to delete the addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etation of statute or non-inclusion of payment of salary to drivers to compute the fringe benefit are thus no assistance as they are distinguishable on facts and circumstances. As discussed, the provisions laid down under clause. (H) to section 115WB(2) of the Act are clear to include the expenditure incurred on payment of salary to drivers within the ambit of running of the car. Hence any contrary interpretation is not required to be made. 9. In the cited decisions by the learned Authorised Representative whole thrust has been given on the plea that driver's salary will not be includible in the maintenance of cars. In the case of Sholinger Textiles Ltd. (supra), me question arose for consideration of the Hon'ble High Court was as to whet ..... X X X X Extracts X X X X X X X X Extracts X X X X
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