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2014 (9) TMI 953 - AT - Income TaxFringe benefits tax - reimbursement of medical expenses to the employees - Held that:- Tribunal in the assessee's own case for the assessment year 2006-07 held that the payments made by the employees to the approved hospitals and the subsequent reimbursement of such payments to the employees by the employer do not attract fringe benefits tax. It was held that when an item which is to be treated as perquisite in the hands of the employees, is exempt in the hands of the individual employee the same cannot be subjected to fringe benefits tax. - Decided in favour of assessee. Fringe benefits tax - sales promotion expenses including publicity expenses - Held that:-Tribunal in the case of Toyota Kirloskar Motor Pvt. Ltd., [2012 (6) TMI 484 - ITAT, Bangalore] has held that any expenditure which is not incurred directly or indirectly for the benefit of employees is not liable for fringe benefits tax. In the case before us also, the employees of the assessee-company are not the beneficiaries. The customers are the beneficiaries. Therefore, respectfully following the decision of the coordinate Bench of the Tribunal to which one of us i.e., the Judicial Member is a signatory, these grounds of appeals are allowed. there is no benefit derived by the employees of the assessee-company from bundling of one product with another and therefore, fringe benefits tax is not attracted. - Decided in favour of assessee. Fringe benefits tax - expenses incurred towards payment of fees, venue hiring charges on trainees enrolled as students in BITS and scholarship given to the trainees - Held that:- the assessee, in association with BITS, has incurred certain expenditure on training programme of fresh gradu ates to prepare them to work with the application programmes and for this purpose has incurred an expenditure of ₹ 4,41,96,480 towards payment of stipend to the trainees which is in the nature of salary, course fees, venue hiring charges etc. It is the contention of the assessee that the amount paid towards training is taxable in the hands of the trainees as perquisites under section 17(2) which is exempt under section 10(16) as the same is paid to meet the cost of education of student and hence, it is not to be included as fringe benefits under section 115WB(2). - Decided in favour of assessee.
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