Employee commuting expenses partially exempt under Section 115WB(3) for AY 2008-2009 affirmed by Tribunal

The Tribunal upheld the Ld. CIT(A)'s decision to exempt 75% of expenses under Section 115WB(3) related to employee commuting facilities for the asstt. year 2008-2009. The Revenue's appeal was dismissed on 11.3.2015.

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Issues:
- Disallowance of expenses under section 115WB(3) of the I.T. Act for the asstt. year 2008-2009.

Analysis:
The Revenue filed an appeal against the order passed by the Ld. Commissioner of Income Tax (Appeals) for the asstt. year 2008-2009. The main contention was regarding the disallowance of expenses under section 115WB(3) of the I.T. Act. The Ld. CIT(A) had held that 75% of the expenses in question were exempt under the Exemption Clause of Section 115WB(3) as they were related to the facility of commutation offered by the assessee to its employees. The Revenue disputed this decision.

During the hearing, the Ld. Counsel for the assessee argued that the expenses were primarily related to car hire facilities for employees during weekends for commuting from home to office and back. The Ld. CIT(A) had carefully considered this argument and found that the expenses were indeed related to the facility of commutation and hence exempt under the law.

Upon reviewing the records and the Ld. CIT(A)'s order, the Tribunal found that the expenses were justified as they were primarily for commuting purposes and fell under the Exemption Clause of Section 115WB(3). The Tribunal agreed with the Ld. CIT(A) that 75% of the expenses were attributable to the commutation facility provided by the assessee to its employees. Therefore, the Tribunal upheld the Ld. CIT(A)'s decision and dismissed the Revenue's appeal.

In conclusion, the Tribunal found no fault in the Ld. CIT(A)'s order and upheld the decision regarding the exemption of 75% of the expenses under Section 115WB(3). The appeal of the Revenue was dismissed, and the order was pronounced on 11.3.2015.

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