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2015 (5) TMI 506 - ITAT AHMEDABADFringe benefits Tax (FBT) - there does not exist any employer-employee relationship between itself and its payees so as to attract the fringe benefit provisions as per assessee - Held that:- Fringe benefit provisions do not apply to sales promotions expenses as the same do not bestow any benefit to the assessee’s employees. Therefore, the assessee’s grounds relating to payment to Seminar & Conference expenses,Sales Promotion Expenses and Cost of Free Samples given to Doctors succeed. - Decided in favour of assessee. Expenses on gifts to business associates and club member fees - Held that:- On being asked the assessee fails to prove that its employees have not at all enjoyed either of the two facilities. Thus, we assume that some of its employees must have availed these benefits. Thus, we accept the assessee’s arguments only in part and delete the impugned additions to the extent of 50% of the sums involve. - Decided partly in favour of assessee. Reimbursement of medical expenses to the assessee’s individual employees - Held that:- The assessee has incurred these amounts for payment of medical reimbursements to its individual employees not exceeding ₹ 15,000/-. Section 17(2) 1st proviso (v) grants exemption to such benefits in the hands of individual employees from being taxed upto the very monetary limit. Section 115WB(3) also excludes operation of sub section 1 in case of such a benefit. We quote case law of Bosch Limited V/s. Dy.CIT, [2011 (10) TMI 383 - ITAT BANGALORE] Godrej Properties Ltd. Vs. ACIT (2012) [2010 (12) TMI 605 - ITAT, Mumbai] and hold that the lower authorities findings under challenge have to be reversed. The Revenue does not point out any distinction on facts. Therefore, the assessee’s arguments challenging inclusion of the impugned individual medical reimbursements in fringe benefits also succeed. - Decided in favour of assessee.
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