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TMI Blog2014 (3) TMI 628X X X X Extracts X X X X X X X X Extracts X X X X ..... angalore] the levy of Fringe Benefit Tax is set aside – Decided in favour of Assessee. - ITA No. 3508 /Ahd/2010, ITA No. 3509/Ahd/2010 - - - Dated:- 13-12-2013 - Sri D. K. Tyagi And Shri A. K. Garodia,JJ. For the Petitioner : Sri O. P. Batheja, Sr. D. R. For the Respondent : Sri Vartik R. Chocksi, A.R. ORDER Per : D. K. Tyagi, Judicial Member:- These appeals have been filed by assesssees against the separate order of Ld. CIT(A)-VI Ahmedabad dated 19-10-2010. 2. The only issue involved in these appeals is whether Ld. CIT(A) erred in confirming the order of AO levying Fringe Benefit Tax in respect of expenses not related to employees and their families. 3. Since these appeals have been filed on similar fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b sec.2 of sec.115WB of the I. T. Act. It is a deeming provision and assessee is liable to tax. The sum of Rs.15,27,895/- as mentioned in above table is added to total Fringe Benefit Value 5. In ITA No. 3509/Ahd/2010 telephone expenses were also there. Assessee s counsel s clarification that on telephone expenses relating to employees Fringe Benefit Tax was paid and only expenses relating to other than employees are subject-matter of this appeal was not disputed by Ld. D.R. 6. Before Ld. CIT(A), assessee s submission was that the charge of fringe benefit tax is levied on the employer in respect of fringe benefit provided by the employer to this employees. In view of this, any expense which had not directly or indirectly resulted into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent to reduce the levy of Fringe Benefit Tax. Since, the provision and sections are very clear and there is no room for any confusion, the linking of the expenses to the benefit of employee is not necessary. Any expenses which is directly incurred for the purpose of employee, is fully taken for the purpose of Fringe Benefit Tax. However, other expenses in the nature of entertainment, sale promotion, conveyance, traveling, gifts etc. may have partial benefit to the employees and therefore, only a part is treated as Fringe Benefit. Since, section clearly defined the value of Fringe Benefit, no further adjustment to the items of expenses debited in profit and loss account is permitted and accordingly Assessing Officer is justified in applying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relied on the orders of lower authorities but did not rely on any contrary decision. We therefore following the decision of this Tribunal in the case of Adani Retail Ltd vs. DCIT (supra) allow the appeals. Relevant portion of which reads as under:- 7. We have heard the rival submissions and perused the orders of lower authorities and materials available on record. The facts of the case are that the Assessing Officer observed that the assessee has incurred sales promotion expenses, publicity expenses, conveyance expenses, tours and travels expenses, telephone and other allowances, motor car included for the purpose of Fringe Benefit Tax and specific percentage is treated as the value of Fringe Benefit included Rs. 1,11,61,364/- in the va ..... X X X X Extracts X X X X X X X X Extracts X X X X
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