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TMI Blog2013 (10) TMI 1373X X X X Extracts X X X X X X X X Extracts X X X X ..... iture, 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 Rs. 36,61,064/- as value of Fringe Benefit. However, the Assessing Officer found that sales promotion and publicity, conveyance, tours and traveling expenses, telephone and other allowances and motor car expenses are specifically included for the purpose of Fringe Benefit Tax and specific percentage is treated as the value of Fringe Benefit. Since the value is to be deemed as per the provisions of the Act, the Assessing Officer added the value of Fringe Benefit Tax not included by the assessee and made addition of Rs. 1,11,61,364/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gy 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 clear and there is no room for any confusion, the linking of the expenses to the benefit of employee is not necessary. Any expenses which are directly incurred for the purpose of employee, is wholly taken for the purpose of Fringe Benefit Tax. However, other expenses in the nature of entertainment, sale promotion, conveyance, travelling, gifts etc. may have partial benefit to the employees and therefore, only a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 included for the purpose of Fringe Benefit Tax and specific percentage is treated as the value of Fringe Benefit included Rs. 1,11,61,364/- in the value of Fringe Benefit for the purpose of Fringe Benefit Tax, which was confirmed in Appeal to the ld. CIT(A). The ld. A.R. of the assessee has relied on the decision of Pune Bench of the Tribunal in case of Desai Brothers Ltd. vs. Additional CIT (supra) and Bangalore B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 Misc. repairs & Maint. (Vehicles) 139737 20% 27947 Car Depreciation 154449 20% 30890 4 Other allowances 2729799 20% 545960 5 Use of telephone (Including mobile phone) Mobile expense 1879074 20% 375815 Telephone & telex expenses a/c. 1573591 20% 314718 Total 55806772 11161354 We find that the Assessing Officer has estimated Fringe Benefit amount at 20% of the expenditure as observed from the above table. He has not brought any material on record to show that the above expenditure gave any benefit to the employees of the assessee company. In absence of any such nexus being proved by the Assessing Officer, in ou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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