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2020 (9) TMI 494 - HC - Income TaxFringe benefit tax u/s 115WB(2)(c) - Sales Promotion Expenses and conference charges - HELD THAT:- Admittedly, the expenditure was incurred by the assessee for the purpose of holding dealers conference. Therefore, the aforesaid expenditure would not have arrived at for determining assessee's liability towards fringe benefit tax under Section 115WB(2)(c). Similarly, the expenses incurred by the assessee towards sales promotion cannot be taxed in view of provision contained in Section 115WB(2)(d). CIT (Appeals) therefore, rightly allowed the assessee's appeal in respect of dealers trading expenses and sales promotion expenses. It is pertinent to note that the Tribunal has recorded a finding that expenditure incurred by the assessee on sales promotion had no nexus on employer-employee relationship and for expenses incurred in holding dealers meet, the question of employer-employee relationship does not arise. Therefore, the order passed by the Commissioner of Income Tax (Appeals) was rightly upheld. - Decided in favour of assessee.
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