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2016 (5) TMI 974 - ITAT DELHI

2016 (5) TMI 974 - ITAT DELHI - TMI - Fringe benefits - Assessment u/s 115 WE(e) - addition to the value of fringe benefits on account of relocation expenses and conveyance expenditure - Held that:- In the case of relocation expenses, the expenditure is incurred by the employee and later on the same is reimbursed to the employee by the assessee. It is not a case of the assessee company paying an amount directly to a third party. In the case of conveyance expenditure it is a payment made by the a .....

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s, we have to hold that FBT is not leviable on this payment also. Regarding expenditure incurred on advertising and sales promotion, it is clear from the order of the Ld.CIT(A) that the assessee has provided 75% of the details. The assessee claims that it had submitted given the entire details before the revenue authorities. As the dispute is whether the requirement documents and details were furnished to the AO or not, we deem it fit and proper to set aside this issue to the file of the A.O. fo .....

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t Year (hereinafter referred to as the A.Y.) 2006-07 and order dt. 26.12.2013 pertaining to the A.Y. 2007-08, wherein he confirmed the order passed by the Assessing Officer (hereinafter referred to as the AO) u/s 115 WE(3) of the Income Tax Act, 1961 (the Act). 2. Facts in brief:- The assessee, M/s Hindustan Coca-Cola Beverages (P) Ltd. is a company engaged in the business of manufacturing and sale of soft drinks. For the A.Y. 2006-07 it filed its return of Fringe Benefit Tax (FBT) on 30th Novem .....

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nt order dt. 24th November, 2009. Aggrieved the assessee carried the matter in appeal without success. Further aggrieved the assessee is before us. 3. We have heard ShriSachit Jolly, the Ld.Counsel for the assessee and Shri T. Vasanthan, the Ld.Sr.D.R. on behalf of the Revenue. 4. We first take up the order for A.Y. 2006-07 in ITA 1026/Del/14. The first issue is addition to the value of fringe benefits, on account of relocation expenses. On a query from the A.O. the assessee had submitted that a .....

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o establish that the reallocation expenses were based on actual expenses incurred by its employees and later reimbursed. He upheld the order of the AO on this issue. The second part of the expenditure under the head conveyance tours and travels relate to the conveyance paid to employees. The case of the assessee is that these expenditure are incurred on transportation of employees from residence to place of work, or office to other place of work or vice versa. This was also dismissed on the grou .....

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on the transfer from one place to another and argued that this was not covered under the provisions of FBT. He further submitted that an amount of ₹ 45,15,502/- was incurred towards conveyance of employees from their residence to the work place and vice versa and this was specifically excluded from FBT under Sub Section(5) of S.115 WB of the Act. He relied on the decision of the Tribunal in the case of TV Today Net Work vs. DCIT (2013) Taxman.com 409 (ITAT Delhi) and submitted that the pa .....

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before the Ld.CIT(A) for admission of additional evidences and submitted that the complete break-up of expenses booked under the head travelling and conveyance were furnished to the A.O. along with sample copies of invoices of service providers, showing expenses incurred for shifting house hold goods of employees during their transfer and as well as for, conveyance of employees from residence to place of work and vice versa. The copies of the same are furnished before us. He also referred to th .....

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case is that the A.O. without considering the submissions of the assessee had determined an amount of ₹ 39,36,47,972/- to be the value of the FBT. Referring to the Ld.CIT(A), he submitted that the details of advertisement expenses were provided and that Ld.CIT(A) records that details of expenses to the extent of 75% were furnished. He vehemently contended that full details were furnished and that copies of vouchers were also filed and the recording by the A.O. is factually incorrect. 7. On .....

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made before the Ld.CIT(A). 8. The Ld.D.R. on the other hand submitted that the assessee has not established with evidence his claims and under those circumstances the lower authorities were right in making these additions. He relied on the order of the A.O. as well as the Ld.CIT(A). Without prejudice to his submissions he submitted that the issues may be set aside to the file of the A.O. for fresh adjudication in accordance with law. 9. Rival contentions heard. On a careful consideration of the .....

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