TMI Blog2013 (10) TMI 1373X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondent: Shri O. P. Batheja, Sr. D.R. O R D E R PER: Shri N. S. Saini, Accountant Member This is an appeal filed by the assessee against the order of CIT(A)-VI, Ahmedabad, dated 03.09.2010. 2. The only issue involved in this appeal is that ld. CIT(A) erred in confirming the order of the assessing officer levying Fringe Benefit Tax in respect of sales promotion expenditure, conveyance, tour and travel expenditure, repairs and maintenance of the vehicle and telephone expenditure etc. 3. The brief factors of the case that the assessee filed Fringe Benefit Tax return declaring ₹ 36,61,064/- as value of Fringe Benefit. However, the Assessing Officer found that sales promotion and publicity, conveyance, tours ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oyer to his employees. As per Section 115WB(2), Fringe Benefit is deemed to have been provided by the employer to his employees if employer has incurred any expenses or made any payments for the purposes mentioned in Clause A to Clause Q. The value of the Fringe Benefit was to be worked out by applying a percentage given in Section 115WC. These two sections do not have any discretion or computation methodology through which the benefit accrued only to employees are to be taken. Since this is a deeming provision and value of Fringe Benefits are also deemed at a particular percentage, there is hardly any discretion either with assessee or Tax Department to reduce the levy of Fringe Benefit Tax. Since, the provisions and Sections are very clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as no element of employer s benefit and is a legitimate business expenditure incurred by the assessee in the course of its business. The impugned expenditure was paid to third parties and not to employees. Since, the expenditure does not result in any benefit to employees, the same was not liable to Fringe Benefit Tax. On the other hand, ld. Sr. D.R. relied on the order of lower authorities. 7. We have heard the rival submissions and perused the orders of lower authorities and materials available on record. The facts of the case are that the Assessing Officer observed that the assessee has incurred sales promotion expenses, publicity expenses, conveyance expenses, tours and travels expenses, telephone and other allowances, motor car i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Fringe Benefit Value 1 Sales promotion publicity Advt. publicity 2548442 20% 509688 Sales promotion publicity 505991 20% 101198 Deferred revenue expenses 42039905 20% 8407981 2 Conveyance, Tour Travel (including foreign travel) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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