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TMI Blog2017 (1) TMI 1701X X X X Extracts X X X X X X X X Extracts X X X X ..... o of judgment of the Hon'ble Bombay High Court in the case of Tata Consultancy Services Ltd. [2015 (5) TMI 518 - BOMBAY HIGH COURT] action of Assessing Officer is untenable and is hereby set-aside. Thus, assessee succeeds on its plea. - ITA NO. 7899/MUM/2011 - - - Dated:- 25-1-2017 - SHRI G.S. PANNU AND AND SHRI RAM LAL NEGI, JJ. Appellant by : Shri Ajay Kumar Rastogi Respondent by : Dr. Saurabh Deshpande ORDER G.S. PANNU, J. The captioned appeal by the assessee is directed against the order of CIT(A)-4, Mumbai dated 09.09.2011, pertaining to the Assessment Year 2006-07, which in turn has arisen from the order passed by the Assessing Officer, Mumbai dated 22.11.2010 under section 115WE(3) r.w.s. 115WG of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or that the Ld. CIT (A) has erred in-upholding addition on account of value of fringe benefit of ₹ 4.01 Crores (being 20% of total expenses of ₹ 20.05 Crores). 9. For that the Ld. CIT (A) has erred in holding that the Circular of CBDT bearing No.8 of 2005 dated 29/08/2005 (Q.No.64) explains the inclusion of the value of FBT on account of distribution of free samples of medical formulations. 10. For that the Ld. CIT (A) has erred in upholding that the applicability of amendment in Clause (vii) of Section 115WB(2)(D) is on and from AY. 2007- 08. 11. For that the Ld. CIT (A) has erred in affirming reliance by the Assessing Officer on the decision of the Hon'ble Apex Court in the case of Eskayef Ltd. reported in 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer, such expenditure was liable to be included for the purposes of FBT, which had escaped assessment at the time of earlier assessment dated 25.11.2008. In the ensuing assessment, assessee pointed out that reopening was not in accordance with law and, in any case, it was sought to be pointed out that expenditure on distribution of free samples was not liable to be included for FBT. One of the points raised by the assessee was that the nature of expenditure does not fall under the category of sales promotion. The Assessing Officer disagreed with the assessee and noticing that such expenses have been held to be in the nature of sales promotion by the Hon'ble Supreme Court in the case of Eskayef (supra), he included the sum of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... based on the judgment of the Hon'ble Supreme Court in the case of Eskayef (supra) and, therefore, the Assessing Officer included the free samples distributed to Doctors and others in the FBT. In our considered opinion, without going into any other arguments, the stand of assessee is liable to be upheld in view of judgment of Hon'ble Bombay High Court in the case of Tata Consultancy Services Ltd. (supra). In the case before the Hon'ble High Court, assessee was engaged in the business of rendering technical consultancy services, marketing of software and hardware products and also export of software. Assessee had claimed expenses on account of payment to one M/s. Tata Sons towards Tata brand equity contribution. The Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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