TMI Blog2015 (5) TMI 518X X X X Extracts X X X X X X X X Extracts X X X X ..... ges. The subscription amount has been paid as per the contractual agreement between the assessee and M/s. Tata Sons Limited. The invoices raised by M/s. Tata Sons Limited are for the services provided and there is no employer employee relationship between the parties. We do not find that such a conclusion is perverse. Mr. Andhyarujina is, therefore, right in relying on the materials which have been handed in to us and which find place equally in the Tribunal's order. Those have been referred to and in the relevant factual backdrop so also on perusal of the agreement in its entirety, that the Tribunal concluded that there is no merit in the Revenue's appeal. - Decided in favour of assessee. - Income Tax Appeal No. 1132 of 2013 - - - Dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal rested its conclusion is erroneous and there is no requirement as is read in the said provisions. In any event, the employer-employee relationship can be culled out if the facts and circumstances placed before the Tribunal had been noted in proper perspective. Therefore, he submits that the appeal be entertained and admitted. 4. On the other hand, Mr. Andhyarujina, the learned senior counsel appearing on behalf of the assessee submits that the Tata Brand Equity And Business Promotion Agreement dated 19th April, 2004, has been perused by the Tribunal. A reading thereof would indicate as to how the payments towards subscription fees had been made and by group companies or various members who are part and signatories to the agreement. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 009, came to be challenged by the assessee-company before the Commissioner of Income Tax (Appeals). The CIT (Appeals) allowed this appeal on 24th February, 2011. The Tribunal found, upon a reading of the order of the Commissioner, that the fringe benefit tax was brought in for the purposes of taxing certain benefits which are derived and during the course of employment. The Tribunal has found that the Act was amended and Chapter XII-H came to be inserted by Finance Act 2005 with effect from 1st April, 2006. In Section 115W the definitions of the term 'employer' and the term 'fringe benefit tax' means the tax chargeable under section 115WA has been inserted. By section 115WA, the charge of fringe benefit tax has been set out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion (3), it has been stated that for the purposes of sub-section (1), the privilege, service facility or amenity does not include perquisites in respect of which tax is paid or payable by the employee or any benefit of amenity in the nature of free or subsidised transport or any such allowance provided by the employer to his employee for journeys by the employees from their residence to the place of work or such place of work to the place of residence. The value of fringe benefits and all other provisions need not be referred 6. We are of the opinion, after reading of these provisions that the Legislature always had in mind a relationship of employer-employee and by virtue of which, these benefits are admissible to the employees. They c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wareness attached to the TATA name / mark and which the proprietor proposes to further systematically develop, promote and enhance in order to provide the collective strength of Tatas to the businesses of individual Tata companies and add value to their businesses as well as legally protect the TATA brand. That is why this agreement proposes the scheme and its signatory thereto viz. the assessee would have to abide by a code of conduct which is required to be followed in all its dealings. As long as there is an association with the TATA name and that association is desired to be continued, then, the enhancement and preservation of that brand by the signatory is contemplated. That is why the term subscriber appears therein and the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the business, but includes in partial measure, a benefit of personal nature. Moreover, in cases where the employer directly reimburses the employee for expenses incurred, it becomes difficult to effectively capture the true extent of the perquisite provided because of the problem of cash flow in the hands of the employer. That is how the tax was conceived of, introduced and then, what we find is that the C.B.D.T. Circular No.8 of 2005, copy of which has been placed on records, indicates that the objective of taxing perquisites or fringe benefits is justified both on grounds of equity and economic efficiency. The benefits and which are not individually attributed to employees, particularly in cases where the benefit is collectively enjo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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