9911796707
TMI Blog2013 (5) TMI 849X X X X Extracts X X X X X X X X Extracts X X X X ..... ed reads as under:- 1) The learned CIT(A) erred in deleting the addition made by the Assessing Officer on medical aid of ₹ 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 ₹ 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 ₹ 9,31,14,688/- as the value of fringe benefits provided by the bank. The assessment was taken up for scrutiny by issuance of statutory notice under section 115W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 2007-08. The relevant finding 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 ₹ 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture from the purview of fringe benefits. The reason stated by the authorities for denying the claim of the assessee is that this expenditure are incurred for providing food/beverages to its customers and not to its employees. The said reason, according to us, is without substance, since the basis of fiction contained in sec.115WB(2) is that certain expenses, if incurred, shall be deemed to have been provided by the employer to his employees. Therefore, if certain species of expenditure incurred on the employees are excluded from the purview of FBT, the same exclusion will also hold good for other persons. In view of the above reasoning, ground nos. 5 to 7 are allowed . 9.1. Following the order of the coordinate bench of the Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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