2013 (5) TMI 849

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....ant assessment year is 2009-2010. 2. The effective grounds raised reads as under:- 1) The learned CIT(A) erred in deleting the addition made by the Assessing Officer on medical aid of Rs. 3,69,75,132/- as taxable fringe benefit. 2) The learned CIT(A) erred in deleting the addition made by the Assessing Officer on entertainment expenses amounting to Rs. 1,05,30,554/- as taxable fringe benefit. 3. The facts in brief are as follows:- The assessee is a nationalized bank, in which majority of shares are held by Central Government. For the assessment year 2009-2010, return of fringe benefits was filed on 29.9.2009 declaring Rs. 9,31,14,688/- as the value of fringe benefits provided by the bank. The assessment was taken up for scrut....

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....of the Tribunal read as follows:- "3.9 In sub-section (3) of section 115WB, it is made clear that section 115WB(1)(a) does not include such perquisite in respect of which tax is paid or payable by the employees. In the instant case, the medical reimbursement is taxable but for the exemption provided in the proviso (v) to section 17(2) up to an amount of Rs. 15,000. Merely by grant of exemption, it cannot be said that the tax is not payable. Therefore, a specific item of perquisite, which is normally taxable in the hands of individual employee, cannot be subjected to FBT, only for the reason that the same is exempt in the hands of the employees. If the above proposition is not accepted, it leads to an anomalous situation. For example, whe....