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TMI Blog2013 (3) TMI 466X X X X Extracts X X X X X X X X Extracts X X X X ..... s held in the case of DCIT Vs Delhi Press Samachar Patra (P) Ltd. (2006 (3) TMI 218 - ITAT DELHI-E). Further, in the case of the appellant itself for the AY 2005-06 the disallowance of salary paid to partners was deleted. Without prejudice to the above, the partners to whom the salary of Rs. 24.00 lacs was paid, are assessed to tax and paying tax at 30% and as such there is no loss to revenue - in favour of assessee. Addition proportionately with regard to various expenses - Held that:- CIT(A) disallowed above addition with an observation that the AO has failed to note that the FBT was paid on the major part of the expenses has been paid by the assessee and for the remaining expenses, the AO could not make any claim for disallowance. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... additions on account of salary paid to the partners and also made certain additions with regard to various expenses on which assessee had paid Fringe Benefit Tax (FBT). Aggrieved, the assessee filed an appeal before the Commissioner of Income Tax(A)-Rohtak which was allowed and the disallowance and additions made by the Assessing Officer were finally deleted. Now, the revenue has filed this appeal before this Tribunal. Ground no.1 4. Ld. DR submitted that the Commissioner of Income Tax(A) has grossly erred in law and on facts in deleting the addition made by the Assessing Officer pertaining to the salary paid to the partners. The DR further submitted that the Commissioner of Income Tax(A) wrongly observed that the Assessing Officer has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AD has no power to allocate expenses arbitrarily as held in the case of DCIT Vs Delhi Press Samachar Patra (P) Ltd. 296 ITR 210 (Del.). Further, in the case of the appellant itself, Hon'ble ITAT Delhi Bench 'F' in ITA No. 554 (Del.) 2009 for the AY 2005-06 vide order dated 17.09.2009, deleted the disallowance of salary paid to partners. Without prejudice to the above, the partners to whom the salary of Rs. 24.00 lacs was paid, are assessed to tax and paying tax at 30% and as such there is no loss to revenue." 5. In view of above findings of ld. Commissioner of Income Tax(A), we are inclined to hold that we are unable to see any ambiguity or perversity in the impugned order in this regard and ground no. 1 of the revenue is devoid of mer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions relating to fringe benefit tax as introduced by the Finance Act, 2005 and invited our attention to the relevant portion thereof to explain the object behind levying fringe benefit tax. As indicated in the said circular, the fringe benefit tax has been introduced as a surrogate tax on employer with the objects of resolving the problems in taxing some perquisites/fringe benefits in the hands of the employees in terms of section 17. Further, as explained in para No. 3.2 of the Circular, the scope of the term "fringe benefits provided" is defined in section 115WB(1) to mean any consideration for employment provided by way of any privilege, service facility or amenity, directly or indirectly, provided by an employer, whether by wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned Commissioner of Income Tax(A) out of conveyance and telephone expenses and allow ground No. 4 and 5 of the assessee's appeal." 7. In the present case, the DR has not disputed the point that the assessee has paid FBT on the various claimed expenses and the Assessing Officer has made disallowance merely on the basis that in absence of complete and properly maintained vouchers, expenses claimed under the heads cannot be allowed. 8. The Commissioner of Income Tax(A) has disallowed above addition with an observation that the Assessing Officer has failed to note that the FBT was paid on the major part of the expenses has been paid by the assessee and for the remaining expenses, the Assessing Officer could not make any claim for disall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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