TMI Blog2014 (6) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... here was no reason to interfere in the order of the CIT(A) – Decided against Revenue. Computation of total value of Fringe Benefit – Whether the assessee is entitled to include only 5% of the conveyance expenses for FBT purposes - Held that:- CIT(A) has noted that out of the gross income of ₹ 271,56,55,082/-, the assessee has earned ₹ 269,19,26,534/- from BPO services - This particular fact establishes that the assessee has to be considered as a company engaged in production of computer software - only 5% of the conveyance expenses should be taken for FBT purposes – thus, there was no infirmity in the order of the CIT(A) in upholding the claim of the assessee – Decided against Revenue. - ITA No. 1794/Mum/2013, C.O. No. 112/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and added the following amounts with the total value of Fringe Benefits in the return: (i) On account of subsidized transport of Rs.2,42,87,175/- and (ii) On account of conveyance expenses of Rs.45,13,848/-. On appeal, the Ld. CIT(A) deleted the addition of Rs.2,42,87,175/- on the reason that circular no. 14 of 2006 dated 28.12.2006 specifically exempt the expenditure of employees incurred on the to and fro journeys from residence to office their employees from the provision of FBT. The Ld.CIT(A) deleted the further addition of Rs.45,13,848/- as the assessee is entitled to include only 5% as against the AO making it to 20% since the assessee also engaged in providing BPO services. Aggrieved by the impugned decision, the revenue has raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upheld. 5. As regards the second issue whether the assessee is entitled to include only 5% of the conveyance expenses for FBT purposes, it is pertinent to mention that the Ld.CIT(A) has noted that out of the gross income of Rs.271,56,55,082/-, the assessee has earned Rs.269,19,26,534/- from BPO services. This particular fact establishes that the assessee has to be considered as a company engaged in production of computer software and therefore, only 5% of the conveyance expenses should be taken for FBT purposes. Therefore, we do not find any infirmity in the order of the Ld. CIT(A) upholding the claim of the assessee and thus the same is upheld. 6. In the cross objection filed by the assessee, the assessee has challenged the reopening ..... X X X X Extracts X X X X X X X X Extracts X X X X
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