Fringe Benefit Tax liability sustained where audit report quantified benefits and treasury payment contradicted the assessee's nil return.

Fringe Benefit Tax liability was sustained where the tax audit report under section 44AB quantified fringe benefits, although the assessee had returned nil value. The Assessing Officer and the first appellate authority applied the statutory deeming scheme in section 115WB(2) and treated the assessee as falling within Chapter XII-H. The record also showed deposit of FBT in the Government Treasury, which was inconsistent with a claim of complete non-liability. No contrary material was produced to displace these findings, so the addition was upheld.

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Issues: Whether the assessee was liable to Fringe Benefit Tax on the value of fringe benefits disclosed in the tax audit report and assessed by the revenue authorities.

Analysis: The assessee had returned nil fringe benefit value, but the tax audit report under section 44AB quantified fringe benefits. The Assessing Officer and the first appellate authority treated the assessee as falling within the class of assessees covered by Chapter XII-H and relied upon the statutory deeming scheme in section 115WB(2). The record also showed that the assessee had deposited the FBT in the Government Treasury, which was inconsistent with its plea of complete non-liability. No contrary material was produced to dislodge these findings.

Conclusion: The assessee was held liable to Fringe Benefit Tax, and the addition was sustained.

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