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2013 (5) TMI 371 - ITAT MUMBAIHotel expenses on travel and motor car expenses and brand subscription fees - whether would be called as a ‘privilege, service facility or amenity’, within the meaning of 115 WB (1) - whether be charged under FBT? - Held that:- As per the settled law FBT is leviable with regard to the payments that result in some benefit to the employees of the assessee. If on the touchstone of this principle case under consideration is tested it becomes clear that addition made by the AO to the value of the FB cannot be endorsed. Though the AO and the FAA have held that expenses incurred by the assessee under the head hotel expenses and car expenses were incurred for employees, yet they have nowhere referred to any material on the basis of which they arrived at the said conclusion. The fact of benefit to employees has not been established, therefore, value of car expenses and hotel expenses cannot be added to the FB value declared by the assessee company. Brand promotion expenses - Held that:- They cannot be treated as FB to the employees as circular no.8 dtd.29.08.2005 CBDT has clarified that for levy of FBT employer-employee relationship is the basic condition. In the case under consideration payment had been paid to another group concern. Thus, there is no direct or indirect benefit has accrued to the employees of the appellant company. Therefore FBT cannot be levied on brand promotion expenses. See M/s. Toyota Kirloskar Motor P.Ltd. (2012 (6) TMI 484 - ITAT, Bangalore), Kotak Mahindra Old Mutual Life Insurance Ltd., (2011 (11) TMI 497 - ITAT MUMBAI) and M/s. Tata Asset Management Ltd. (2012 (6) TMI 137 - ITAT MUMBAI) - In favour of assessee.
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