Court held that where there is no employer-employee relationship between the assessee and the persons in respect of whom the expenditure is incurred, the expenditure cannot be subjected to fringe benefits tax. Accordingly amount spent on sponsoring students for higher education is not liable to Fringe benefits. Similarly the expenses incurred by the assessee on bundling of the product are not exigible to fringe benefits tax. Reimbursement of medical expenses to employees in excess of fifteen thousand rupees liable to Fringe benefits. (AY. 2006-07)
CIT v. Wipro Ltd. (2021) 430 ITR 34/ 279 Taxman 253 (Karn.)(HC)
S. 115WB : Fringe benefits-Sponsoring students for higher education-No relationship of employer and employee-Amounts spent on bundling of product-Not liable to be assessed as Fringe benefits-Reimbursement of medical expenses to employees in excess of fifteen thousand rupees liable to Fringe benefits. [S.17(2)(v)]