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2016 (6) TMI 844 - AT - Income TaxFringe benefits - addition of sales promotion/lodging expenses - Held that:- The impugned expenditure of ₹ 84,42,880/- has been incurred for the members against membership fees taken from time to time and the Instructions of CBDT Circular No.8, dated 29.8.2005 shall not apply on the assessee as no benefit has been passed on by the employer to its employees and, therefore, deeming provisions of section 115WB(2) of the Act cannot be invoked mechanically in respect of every item of expenditure unless and until it co-relates to the benefit of employees. We therefore, find no reason to interfere with the order of ld. CIT(A) on this issue in deleting the addition - decided against revenue Addition on account of FBT being 20% of telephone expenses and 50% of Gift expenses - Held that:- From going through the observation of ld. CIT(A) and also respectfully following the decision of Co-ordinate bench in the case of Joshi Technologies International Inc. vs. ADIT (Int’s Tax) (2013 (5) TMI 713 - ITAT AHMEDABAD ) and also looking to the fact that ld. Assessing Officer has not disputed about the incurring of expenditure on lease line telephone expenditure and towards gifts/prizes, we are inclined to accept the contention that there is no element of benefit to the employees in the expenditure and therefore, no interference is called for in the order of ld. CIT(A) on this issue in deleting the addition - Decided against revenue
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