2015 (7) TMI 443

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..... who had to stay on in the office beyond the prescribed office time and who could not avail the benefit of regular shuttle service for the employees. - CIT(A) has also noted that the Ld. Counsel of the assessee was asked to furnish the details of expenses that were in respect of commutation of staff from home to office hours or during the weekends and other car hire facilities. - CIT(A) has rightly held that 75% of the expenses booked in the category 2 in respect of which disallowance was made by the AO could be attributed to the facility of commutation offered by the assessee to its employees from home to office and back and hence were exempt under the Exemption Clause under section 115WB(3). In view of above, we are of the view that the L .....

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..... d by the assessee to its employees from home to office and back and hence were exempt under the Exemption Clause under section 115WB(3). 5. We have heard both the counsel and perused the relevant records available with us, especially the order passed by the Ld. CIT(A). We find that the Ld. CIT(A) has observed that the action of the AO in treating the entire amount of expenses booked under the second category was not justified as these expenses were primarily in respect of car hire facilities for the employees during the weekends for which a separate arrangement was made as a regular shuttle service from home to office and back. We find that the Ld. CIT(A) has further observed that as distinct from the regular facility for commutation of .....

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..... different from the first category of expenses. The balance amount is in the nature of conveyance facility to the employees for office purpose during the office hours to some other place of work. 5.1 We further note that on careful consideration, Ld. CIT(A) has rightly held that 75% of the expenses booked in the category 2 in respect of which disallowance was made by the AO could be attributed to the facility of commutation offered by the assessee to its employees from home to office and back and hence were exempt under the Exemption Clause under section 115WB(3). In view of above, we are of the view that the Ld. CIT(A) has rightly confirmed the addition to the extent of 25% of such expenses. Therefore, we find no infirmity in the impugne .....

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