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2016 (5) TMI 1083 - ITAT BANGALORE

2016 (5) TMI 1083 - ITAT BANGALORE - TMI - Fringe benefit tax - CIT (A) found that the expenditure on hiring of motor-car for meetings, inspection etc., as well as expenses on owned motor car at corporate office are subjected to FBT - Held that:- As per the provisions of Section 115WB(2) of the Act, what is to be considered as fringe benefit is the benefit given to the employee directly or indirectly. In view of the above facts and circumstances of the case and by following the earlier decision .....

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: Shri.P. Dhivahar, JCIT ORDER PER VIJAY PAL RAO, JUDICIAL MEMBER: This appeal by the Revenue is directed against the order dt.14.11.2014, of the CIT (A), Mysuru, arising from Fringe Benefit Tax ( FBT in short) assessment u/s.115WG of the Income-tax Act, 1961 ( the Act in short), for the assessment year 2008-09. 02. Revenue has raised the following grounds : 03. AO while passing the assessment order u/s.115WG of the Act, dt.28.03.2013, computed the value of fringe benefit by making an addition o .....

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or employees of the assessee. 05. Before us, Ld. DR has submitted that the CIT (A) in para 7 of the impugned order has stated that he has verified the document furnished by the assessee without giving the details of such documents and further without giving an opportunity to the AO to rebut such documents. Therefore the CIT (A) has violated Rule 46A of the Income-tax Rules. Ld. DR has pleaded that the matter may be remitted to the record of the AO for verification of the relevant materials in th .....

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s own case for A. Y. 2006-07. Therefore issue raised by the Revenue is covered by the decision of this Tribunal in assessee s own case. 07. Having considered the rival submissions as well as the relevant material on record, we find that the assessee challenged the action of the AO before the CIT (A) in respect of the following expenses which were brought to FBT : 08. CIT (A) has considered the expenditure which were incurred in respect of the assessee s own vehicle used for transportation of sto .....

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Tribunal in assessee s own case for A. Y. 2006- 07. Accordingly the CIT (A) has confirmed the addition in the value of fringe benefit in para 7, as under : 1) Hiring for meetings, inspection, etc., .. Rs.1,03,19,767/- 2) Own expenses - Motor car expenses at corporate office .. Rs.5,86,625/- 10. Thus it is clear that the CIT (A) has confirmed the action of the AO in respect of the expenditure incurred by the assessee on hiring of the motor car for the purpose of meetings, inspection etc., by the .....

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ovisions, any form of conveyance provided by the employer to the employees would be fringe benefits, taxable in the hands of the employer. During the previous year relevant to asst. year 2006-07, the clause (F) included the words conveyance, tour and travel (including foreign travel) , while the words tour and travel (including foreign travel) were omitted by Finance Act of 2006 w.e.f. 1/4/2007 and has been inserted into clause (Q) w.e.f. 1/4/2007; therefore, in the relevant asst. year, the word .....

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ovided by an employer to his employees, in addition to the cash salary or wages paid, is subject to varying treatment in different countries and these benefits are either taxed in the hands of the employees themselves or the value of such benefits is subject to a fringe benefit tax in the hands of the employer. The rationale for levying a fringe benefit tax on the employer lies in the inherent difficulty in isolating the personal element where there is collective enjoyment of such benefits and a .....

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he above explanatory memorandum on fringe benefit tax and also the intention of the legislature, it is also necessary to look into the Finance Minister s speech, which is reproduced in 276 ITR page 3 (Statutes), is reproduced as under:- I have looked into the present system of taxing perquisites and I have found that many perquisites are disguised as fringe benefits and escape tax. Neither the employer nor the employee pays any tax on these benefits which are certainly of considerable material v .....

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