9911796707
TMI Blog2011 (5) TMI 1018X X X X Extracts X X X X X X X X Extracts X X X X ..... ar under consideration declaring value of total fringe benefits at ₹ 59,36,353/-. During the course of assessment proceedings the AO has noticed that the assessee has paid commission of ₹ 52,95,896/- and no fringe benefit tax was paid on the above account and called the explanation from the assessee and the assessee has submitted that the company has paid commission to the Field System Integrator and he is not the employee of the assessee and no fringe benefit tax is payable by the assessee. However, the AO has not agreed with the submission of the assessee and observed that the commission was paid for promoting the sales and after sales services and the assessee has failed to substantiate that the commission was not paid for sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the AO. It is noticed that the AO has observed from the details filed by the appellant co. in respect of Fringe Benefit as commission paid of ₹ 52,92,826/-. The AO has enquired the basis and terms and conditions for payment of commission. The appellant submitted the specimen agreement of terms and conditions and basis of commission paid. The AO relied on the general clause of this agreement as stated above. Finally, the AO has concluded that the assessee has failed to substantiate that the commission has not paid for sales promotion and after sales services. Hence, he has added the commission paid of ₹ 52,95,896/- to the Fringe Benefit as sales promotion u/s.115 WB(2)(D). On the other hand, the appellant has relied on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the concerned party and admittedly no such relation exited in the present case, supported the order passed by the ld. CIT(A). 5. We have heard both the parties, perused the records, gone through the orders of the authorities below. The only issue involved in this appeal is whether the assessee is liable to fringe benefit tax on the payment of ₹ 52,95,896/-. The assessee is in the business of field measuring instruments and process solutions. The assessee company has engaged Field System Integrator as an agent and according to the terms and conditions of the MOU the commission will be paid to the agent as per the paper book page-42. The ld. CIT(A) after examining the entire MOU entered between the assessee and party gave a finding ..... X X X X Extracts X X X X X X X X Extracts X X X X
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