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 for employees working on Mobile Offshore Drilling Rigs. The Court held that the transportation provided by the employer for employees commuting from their home countries to the place of work does not constitute a fringe benefit under the Act, as it is not a privilege or amenity provided for employment. Consequently, the appeal was allowed, and the imposition of FBT was set aside.