2013 (10) TMI 607

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....of Assessing Officer who considered 100% such benefits provided by the employer instead of 40% in terms of Rule 8 of Income Tax Act, 1962. (2) That on the facts and in the circumstances of the case, Ld. CIT(A) is wrong in confirming the action of Assessing Officer who rejected the revised computation of Taxable Fringe Benefit by excluding 60% of the expenditure as relatable to agricultural activities. (3) That on the facts and in the circumstances of the case, Ld. CIT(A) is wrong and unjustified in confirming order u/s. 115WE(3) of Income Tax Act, 1961 wherein the value of Fringe Benefit was computed at Rs.77,75,460/-. 2. The relevant facts are that the assessee derives income from sale of Tea grown and manufactured by it. There is....

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....rcation of expenses between different activities carried on by the assessee. The FBT u/s. 115WA is chargeable on the Fringe Benefits defined u/s. 115WB. The Fringe Benefits basically include certain expenses incurred by the assessee to provide certain privilege, facility or amenities to its employees. Therefore, in the facts and circumstances of the case and having regard to the provisions of Section 115WA to 115WL of the Income Tax Act, 1961, the application of Rule-8, as claimed by the Ld. A/R, does not appear to be convincing. Rather, the Ld. A/R has failed to establish the claim for application of Rule-8 for determination of taxable value of Fringe Benefits." The Assessing Officer also considered that interest of Rs.53,390/- paid on ....

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....epresentative further referred to Sub-Section (2) of Section 115WA and submitted that it is a non-obstante Section and even if no income-tax is payable by an employer, the Fringe Benefit Tax is payable on the Fringe Benefits provided or deemed to be provided by an employer to its employees. The Ld. Departmental Representative placed reliance on the following two decisions of the authority of advance ruling :- (1) Singapore Tourism Board [2008] 307 ITR 34 (AAR) (2) Population Council Inc. [2006] 286 ITR 243 (AAR) 7. We have carefully considered the submissions of the Ld. Representatives of the parties and the orders of the authorities below. We have also considered the relevant provisions i.e. Section 115WA, 115WB & 115WE of the Inc....