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TMI Blog2014 (11) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO - thus, the matter is remitted back to the AO for verification. Exclusion of Trade mark fee and Sales promotion expenses - Held that:- The nature of expenditure incurred by the assessee is also not clearly brought out in the order of AO in order to determine the relevant provisions of the Act which could be invoked to bring the expenses under the net of FBT - thus, the matter is remitted back to the AO for verification. Foreign maintenance allowance and staff training expenses – Held that:- CIT(A) has categorically made a finding that these expenditures also includes boarding and lodging - the correct and full classification of expenditure is not split and made clear, and thus the relevant provisions of the Act that should be inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) The Learned CIT (Appeals) has erred in following the decision of his predecessor and not arriving at his own conclusions. (3) The Assessing Officer and Hon. CIT(Appeals) have erred in not considering the submissions made from time to time and have erred in not following the CBDT instructions correctly on the subject. 2. Assessing Officer during the course of assessment proceeding observed that assessee had not worked out correctly the liability for FBT on payments made by it under following heads: i) Sales promotion ₹ 4,18,356/- ii) Travelling Expenses ₹ 6,73,166/- iii) Conference Expenses ₹ 2,36,633 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pation by the employees in any conference). Explanation.- For the purposes of this clause, any expenditure on conveyance, tour and travel (including foreign travel), hotel, or boarding and lodging in connection with any conference shall be deemed to be expenditure incurred for the purposes of conference; (D) Sales promotion including publicity: (i) Provided that any expenditure on advertisement,- (i) Being the expenditure (including rental) on advertisement of any form in any print (including journals, catalogues or price lists) or electronic media or transport system; (ii) Being the expenditure on the holding of, or the participation in, any press conference or business convention, fair or exhibition' (iii) Being the exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses. Therefore, the expenditure on brokerage and selling commission is not expenditure for the purposes of 'sales promotion including publicity' within the meaning of clause (D) of sub-section(2) of Sec.115WB Accordingly, FBT is not payable on brokerage and selling commission paid for selling goods. 9. Now let us analyze the expenses incurred by the assessee. Sl. No. Head of expenses Details of expenditure FBT not liable according to assessee which is not Explanation offered by the assessee accepted by A.O 1. Sales promotion Sales conference 93060 Fees for exhibition in Japan not liable to FBT 2. Conference Conference e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arly emerge from the order of the Id. A.O. Therefore, we remit back this issue to the file of Ld.A.O for verification and pass appropriate order as per law. 2) With respect to Item Nos.2 to 9 excluding item No.7 being Trade mark fee of ₹ 500/- which falls outside the purview of FBT, the nature of expenditure incurred by the assessee is also not clearly brought out in the order of Id.AO in order to determine the relevant provisions of the Act which could be invoked to bring the expenses under the net of FBT. Therefore, in the interest of justice this issue is also remitted back to the file of AO. 10. Thus the first ground viz. Ld. Addl.CIT has erred in making the addition and Hon.CIT(A) have erred in sustaining the addition of & ..... X X X X Extracts X X X X X X X X Extracts X X X X
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