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2015 (6) TMI 932 - AT - Income TaxLiability to payment of Fringe Benefit Tax - whether there exists a master servant relationship between the appellant & its consultants? - the liability of Fringe Benefit Tax arises merely because the expenses incurred by the appellant are of the nature as contemplated by section 115WB of the Act even though there are no employees as held by CIT(A) - Held that:- As relying on assessee’s own cases for previous AY's [2013 (5) TMI 713 - ITAT AHMEDABAD]and [2015 (6) TMI 628 - ITAT AHMEDABAD]FBT is eligible only in a case where expenditure is incurred by the employer ostensibly for the purpose of business but includes partially a benefit of a personal nature passed on to the employee. But, a legitimate business expenditure not within the ambits of employer & employee relationship is outside the scope of FBT. In view of these observations, we hereby hold that the FBT provisions have wrongly been invoked in the present case. We hereby reverse the legal findings of the authorities below and direct the AO to give relief accordingly. - Decided in favour of assessee.
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