R & B Falcon (A) Pty Ltd vs Commissioner Of Income Tax

The Supreme Court interpreted Section 115WB of the Income Tax Act, 1961, concerning the imposition of Fringe Benefit Tax (FBT) on transportation costs incurred by an employer for offshore employees. The Court held that the transportation provided from the employees' home countries to the Mobile Offshore Drilling Rig does not constitute a fringe benefit under the Act, as it is not a privilege or amenity provided for personal benefit but a necessity for work. Consequently, the appeal was allowed, and the Authority for Advance Ruling's decision was set aside, ruling that the transportation costs are not liable for FBT.