9911796707
TMI Blog2013 (6) TMI 516X X X X Extracts X X X X X X X X Extracts X X X X ..... ol of sharable resources of the Tata group to the company and provide assistance in accessing the network of domestic and international business contacts and also permit the company to use the business name. Considering the circular No. 8 of 2005 dated August 29, 2005 employer/employee relationship is a pre-requisite for the levy of fringe benefit tax. Thus no such thing present on the facts of the present case. The subscription amount has been paid as per contractual agreement between the assessee and M/s. Tata Sons Ltd. The invoice raised by M/s. Tata Sons Ltd. is for the services provided for it. As no employer-employee relationship exists between the assessee and M/s. Tata Sons Ltd. subscription payment deserves to be kept out side ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T and therefore the same may be excluded from FBT. The claim of the assessee did not find any favour from the AO who relied upon the ratio laid down by the Hon ble Supreme Court in the case of Goetz India Ltd. 284 ITR 323 holding that the AO has no powers to allow a claim without assessee having filed a revised return. The AO further observed that a similar plea was taken during the FBT proceedings for A.Y. 2006-07 wherein also the assessee did not get any relief. As the assessee has itself included the expenses on brand equity contribution under the head sales promotion expenses, the AO went on to include the said expenses for the calculation of the total value of FBT and accordingly completed the FBT assessment. 5. The assessee agitated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perty services. Relying upon the decision of the ITAT Bangalore in ITA No. 1178/Bang/09 in the case of DCIT Vs M/s. Mescom, the Ld. Counsel submitted that the subscription does not result into any direct or indirect benefit to the employees. Therefore, such contribution is outside the purview of the provisions of FBT. 8. We have heard the rival submissions and carefully perused the orders of lower authorities. It is not disputed that payment of M/s. Tata Sons Ltd. by the assessee is a subscription as per the agreement between the assessee and M/s. Tata Sons dt. 19.4.2004. As per the Tata Brand Equity and Business Promotion Agreement between Tata Sons Ltd., and the assessee, the assessee is under contractual obligations to make payment tow ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
