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TMI Blog2013 (10) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... careful perusal of these answers reveals that where incentives are given to distributors for meeting quantity target, the expenses fall within answer to question No.61, whereas free gifts to distributors and customers without any quantitative target, fall within answer to question No.66 – Decided against the Revenue. - Income Tax Appeal No.180 of 2013 - - - Dated:- 9-9-2013 - Rajive Bhalla And Dr. Bharat Bhushan Parsoon,JJ. For the Appellant : Ms. Savita Saxena, Advocate ORDER Rajive Bhalla, J. The revenue is before us impugning the correctness of an order dated 30.01.2013, passed by the Income Tax Appellate Tribunal, Chandigarh, primarily on a plea that expenses incurred under the head Selling Expenses are to be tre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (D) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). Rs.63,84,090/- was accordingly added to fringe benefits. Penalty under Section 271(1)(d) of the Act was initiated separately for furnishing inaccurate particulars. Aggrieved by this order, the assessee filed an appeal. The Commissioner of Income Tax examined answers of the CBDT to question nos.61 and 66 and while dismissing the appeal, held as follows:- From the aforesaid facts it emerges that there is one essential difference between the incentives referred to in Question No.61 Question No.66. While the incentives referred to in Question No.61 are given to distributors after they meet the sales target the incentives referred to in Question No.66 are given to dea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers show that question no.61 relates to the situation where incentive are given to the distributors for meeting quantity target. This can be in the form of free gifts like television or cash incentives or even foreign trip. On the other hand, situation covered by question no.66 relates to free gifts to distributors as well as the consumers without any quantitative target. In our opinion, these are two different situations and apply separately. For example in case of question no.61, the situation can be that of free mixy would be given if the dealer achieve the target of let us say 100 nos. If the dealer achieves target of more than 250 number then he would be entitled to a free television and if such dealer achieves the target to more than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certain incentives to the dealer for achieving particular target and is clearly covered by the situation covered by answer to question no.61 in the circular no.8/2005 issued by the CBDT. Therefore, we set aside the order of the Ld. CIT(A) and direct the Assessing Officer not to include the amounts spent on Hero Bumper Bonanza Foreign Trip and Attractive Gift in the fringe benefit. A perusal of the statutory provisions, answers by the CBDT, to question nos.61 and 66 and due consideration of findings recorded by the Income Tax Appellate Tribunal, leave no manner of doubt that opinion recorded by the Income Tax Appellate Tribunal is legally correct and free from error. The distinction between the two situations, referred to in answers to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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