9911796707
TMI Blog2013 (8) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... opy of the paper-book on record, it was submitted by the ld. AR that the issues arising in the instant appeal, i.e., the validity in law of the levy of Fringe Benefit Tax (FBT) on the various fringe benefits deemed to have been allowed by the assessee stand covered by the orders by the orders by the Co-ordinate Bench of the Tribunal in its own case for the immediately two succeeding years, i.e., A.Y. 2007-08 and 2008-09, as also in other cases, including in the case of group concerns. The Finance Minister's speech in the Lok Sabha at the time of introduction of the relevant provisions of the Chapter XII-H, as well as the Memorandum explaining the provisions of Finance Bill, 2005 (relevant extracts), have also been placed at pages 1-2 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciples, which emanate there-from:- a) the primary ingredient for the levy of FB is the existence of the employer- employees relationship, so that the same cannot be applied where this relationship does not exist; b) the FBT could be levied only where there is, on account of an expenditure, a provision of benefit directly or indirectly by the assessee to his employees, so that where there is no scope for the same, FBT could not be levied; the deeming provision of section 115WB(2) has to be strictly construed, and cannot extend to cases where there is no scope of provision of any benefit to the employees; c) where the benefits are provided directly by the employer to his employee, the same would continue to be taxed in the hands of the emp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the expenditure involved was the contribution to various employee welfare funds, as also sale promotion expenses. In Endress & Hausser India Pvt. Ltd. (in ITA No.5434/Mum/2009 dated 09.05.2011), the expenditure involved was again sale promotion expenses. In Godrej Properties Ltd. (in ITA No.840/Mum/2010 dated 03.12.2010/49 SOT 87 (URO)), the expenditure involved was reimbursement of medical expenses, which were found as liable to be assessed u/s.17, being fully attributable to the concerned employee/s. 3.3 We have already noted our respectful agreement with the ratio of the foregoing decisions, which we have taken pains to enlist at para 3.1 of this order. We may now examine the expenses under reference in light thereof, each of which stan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... employees, that the impugned expenditure would stand to be covered u/s. 115WB(2)(K), and the said provision be said to be applicable. The total expenditure incurred during the year would therefore be required to be proportioned in the ratio of the user by the assessee's employees as against non-employees. This is as it is only to that extent that the expenditure can be said to have been incurred by it for the benefit of its employees. The assessee succeeds partly, and the matter will travel to the Assessing Officer to allow the assessee an opportunity to furnish the relevant details. 3.4 The third and the fourth grounds are in respect of expenditure on hotel during travel, and motor car expenses, which are claimed by the assessee to have ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
