2014 (6) TMI 696

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.... Shri Sanjeev Jain ORDER   Per Dr. S. T. M. Pavalan: These Appeal and the cross objection filed respectively by the Revenue and the Assessee are directed against the order of the Ld.CIT(A)-2, Mumbai dated 06.12.2012 for the Assessment Year 2006-07. 2. In the appeal filed by the revenue, the revenue has raised the following grounds:- "1. Whether on the facts and in the circumstances of....

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....ining the total value at Rs.58,14,856/-. Thereafter, the assessment was reopened and the AO completed the reopened FBT assessment and added the following amounts with the total value of Fringe Benefits in the return: (i) On account of subsidized transport of Rs.2,42,87,175/- and (ii) On account of conveyance expenses of Rs.45,13,848/-. On appeal, the Ld. CIT(A) deleted the addition of Rs.2,42,87,1....

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....on of Finance Act 2006 reads as follows:- "To specifically exempt expenditure of employers, incurred on the to and fro journeys from residence to office of their employees, from the provisions of this tax, sub-section 3 of section 115WB has been amended to provide that any benefit or amenity in the nature of free or subsidized transport or any such allowance provided by the employer to his employ....

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....econd issue whether the assessee is entitled to include only 5% of the conveyance expenses for FBT purposes, it is pertinent to mention that the Ld.CIT(A) has noted that out of the gross income of Rs.271,56,55,082/-, the assessee has earned Rs.269,19,26,534/- from BPO services. This particular fact establishes that the assessee has to be considered as a company engaged in production of computer so....