2014 (10) TMI 68

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Income Tax Appeal was admitted on the following questions : "1. Whether the Tribunal below committed substantial error of law in upholding the computation of the value of fringe benefit in the case of assessee engaged in the business of growing, manufacturing and sale of tea without having regard to the relevant provisions of the Incometax Act, 1961 read with Rule 8 of the Income-tax Rules 1962....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....arriving at the value of fringe benefit for the purpose of tax therein. The issue has been decided in the unreported judgement delivered on 3rd July, 2014 in ITAT 165 of 2013, G.A.No.3135 of 2013 (M/s.Apeejay Tea Ltd. vs. Commissioner of Income Tax, Central-I & Anr.) in considering an illustration given by the Hon'ble Supreme Court in CIT vs. Doom Dooma India Ltd. reported in 310 ITR 392. We set o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ure. The submission made by Mrs. Gutgutia that the expenditure on account of fringe benefits has already been taken into account is not correct. The net profit and loss of the business has to be arrived at after deducting all the expenses as indicated in illustration 'A' in the case of Doom Dooma (supra). Once that is done 40% of the net profit and loss has to be worked out which shall be chargeab....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ot be sustained. The submissions advanced by Ms. Gutgutia naturally do not help the revenue. The judgment cited by her was with regard to the question as to whether fringe benefit tax amounts to double taxation. That question was answered by Their Lordships in the negative. Before us, the question of double taxation has not arisen for consideration. The question formulated above is, therefore, ....