9911796707
TMI Blog2010 (7) TMI 762X X X X Extracts X X X X X X X X Extracts X X X X ..... idered the arguments advanced by the parties in view of the orders of the lower authorities and the decisions relied upon. 3. During the course of assessment proceedings the AO noted that expenditure on running and maintenance of motor cars was quantified by the auditors at Rs. 54,28,382, however, in the return of fringe benefits, the same was disclosed by the assessee company at Rs. 45,97,091. The difference of Rs. 8,31,311 was attributable to following expenses : (a) Interest on loan taken for purchase of motor cars Rs. 3,11,580 (b) Salary of drivers Rs. 5,19,731 The AO remained of the view that; the words "repairs", "running" and "maintenance of motor cars" shall cover every expenses connected with use of motor cars in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not justified in including the expenditure on payment of interest on loan taken for purchases of motor cars i.e., Rs. 3,11.580 to compute the fringe benefits. Every required related expenses like repairs, running (including fuel), maintenance of motor cars and the amount of depreciation thereon have been mentioned in specific wordings in the provision, hence the AO was not justified in including the interest expenditure incurred on loan taken for purchase, of motor cars for working out fringe benefits. For a ready reference the provisions laid down in said clause (H) are being reproduced hereunder : "115WB(1)................ (2) The fringe benefits shall be deemed to have been provided by the employer to his employees, if the employer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... employed to drive the car. When a driver is employed to drive the car, expenditure is incurred on payment of his salary besides expenditure incurred on fuel etc. We thus do not find reason to concur with the argument of the learned Authorised Representative that expenditure incurred on payment of salary to driver will not be included in computing the expenses on running of the car within the meaning of the provision laid down under section. 115WB(2)(H) of the Act. The decisions relied upon by the learned Authorised Representative on the question of interpretation of statute or non-inclusion of payment of salary to drivers to compute the fringe benefit are thus no assistance as they are distinguishable on facts and circumstances. As discuss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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