TaxTMI 
TaxTMI 
2013 (6) TMI 569
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....r for the sake of convenience and brevity. 2. Before proceeding with the grounds of appeal, it would be pertinent to discuss the issues raised by the Ld. Departmental Representative. It is the say of the Ld. DR that the assessee itself has filed Fring benefit Tax return and has offered the value taxable as FBT, therefore, the assessee cannot retract now raising the issues relating to the taxability of FBT. It is the contention of the Ld. DR that if the assessee was not convinced with its return of fringe benefit, it should have filed a revised return failing which the assessee should be precluded from raising such grounds of appeal. In support of his submissions, the Ld. DR relied upon the decision of the Hon'ble Supreme Court in the cas....
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....ative and while answering this question, the Hon'ble Jurisdictional High Court has considered various decisions of the Supreme Court. Respectfully following the decision of the Jurisdictio9nal High Court, we proceed with the grounds of appeal one by one. Moreover , we find that the assessee has returned fringe benefits with a rider that ' taking abundant precaution ' the value is offered for fringe benefit tax and this fact has also been acknowledge by the AO while dealing with every item of Fringe benefits in his assessment order. ITA No. 4910/Mum/2011 - A.Y. 2006-07 6. Ground No. 1 relates to levy of FBT on expenses incurred on non- employees. 7. The AO at page-2 para 3.1 of his order states that "as a matter of abundant caution,....
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....ntroduction of FBT is that it is difficult to isolate the "personal element" if the benefits are collectively enjoyed by the people which means that the provisions of FBT will be applicable only in respect of those expenses which contain or atleast are likely to contain an element of personal benefit to employees. We do not find any such thing present on the facts of the present case." 11. Facts of the present case are identical, therefore, respectfully following the decision of the Tribunal, we direct the AO to exclude from the taxable value of FBT amount of Rs. 3,91,08,627/-. Ground No. 1 is accordingly allowed. 12. Ground No. 2 relates to charging of FBT on fringe benefit which are taxable in the hands of employees. 13. This hea....
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....bove, that perquisites which are directly attributable to the employees deserves to be kept outside the purview of FBT. Accordingly, we direct the AO to exclude these items of perquisites outside the ambit of taxable value of fringe benefit. This ground is accordingly allowed. 16. Ground No. 3 relates to administration expenses incurred on driver/pilot who are in pay role of the company is chargeable as salary, therefore, such salary should not be taxed again as fringe benefit in the hands of the employer. 17. The assessee further contended that expenses on repair, running and maintenance of motor car/aircraft do not include remuneration paid to drivers/pilot. 18. We find that the contention raised by the assessee are supported by ....
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....ich depreciation is allowable u/s. 32 of the Act does not fall within the scope of sub-sec. (2) of Sec. 115WB of the Act. Since the approximate objective of incurring such expenditure is the acquisition of a capital asset therefore, such expenditure is not included in reckoning the value of fringe benefit. Drawing support from the answer of the CBDT, we direct the AO to exclude value of such fringe benefit of Rs. 6,68,332/- from the taxable value of fringe benefit. Ground No. 5 is accordingly allowed. 22. Ground No. 6 relates to expenses on maintenance of residential accommodation not in the nature of guest house. 23. The Tribunal had the occasion to decide the issue of accommodation not in the nature of guest house while disposing of....