TMI Blog2016 (5) TMI 1083X X X X Extracts X X X X X X X X Extracts X X X X ..... d to indicate that the assessee had filed any additional or fresh evidence before the CIT (A). Therefore we do not find any merits in the grounds raised by the Revenue. - I.T.A No.311/Bang/2015 - - - Dated:- 20-4-2016 - SHRI. VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI. INTURI RAMA RAO, ACCOUNTANT MEMBER For The Assessee : Shri. Omar Abdullah S. M, CA For The Revenue : Shri.P. Dhivahar, JCIT ORDER PER VIJAY PAL RAO, JUDICIAL MEMBER: This appeal by the Revenue is directed against the order dt.14.11.2014, of the CIT (A), Mysuru, arising from Fringe Benefit Tax ( FBT in short) assessment u/s.115WG of the Income-tax Act, 1961 ( the Act in short), for the assessment year 2008-09. 02. Revenue has raised the following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the AO. Ld. AR has submitted that CIT (A) has confirmed the addition made in the fringe benefit valuation by following the decision of this Tribunal in assessee s own case for A. Y. 2006-07. Therefore issue raised by the Revenue is covered by the decision of this Tribunal in assessee s own case. 07. Having considered the rival submissions as well as the relevant material on record, we find that the assessee challenged the action of the AO before the CIT (A) in respect of the following expenses which were brought to FBT : 08. CIT (A) has considered the expenditure which were incurred in respect of the assessee s own vehicle used for transportation of storage and other purposes as under : i. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion purpose and other official purpose were found to be beyond the purview of Section 115WBF of the Act. Coordinate bench of this Tribunal in assessee s own case for A. Y. 2006-07, in ITA No.1178/Bang/2009, vide order dt.19.05.2010 has dealt with an identical issue in paras 9.3 to 9.5 as under : 9.3 As seen from the above provisions, any form of conveyance provided by the employer to the employees would be fringe benefits, taxable in the hands of the employer. During the previous year relevant to asst. year 2006-07, the clause (F) included the words conveyance, tour and travel (including foreign travel) , while the words tour and travel (including foreign travel) were omitted by Finance Act of 2006 w.e.f. 1/4/2007 and has been inser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause of the problem of cash flow in the hands of the employer . 9.4 In order to understand the above explanatory memorandum on fringe benefit tax and also the intention of the legislature, it is also necessary to look into the Finance Minister s speech, which is reproduced in 276 ITR page 3 (Statutes), is reproduced as under:- I have looked into the present system of taxing perquisites and I have found that many perquisites are disguised as fringe benefits and escape tax. Neither the employer nor the employee pays any tax on these benefits which are certainly of considerable material value. At present, where the benefits are fully attributable to the employee, they are taxed in the hands of the employee; that position will con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of Section 115WB(2) of the Act, what is to be considered as fringe benefit is the benefit given to the employee directly or indirectly. 12. In view of the above facts and circumstances of the case and by following the earlier decision of this Tribunal we do not find any error or any irregularity in the impugned order of the CIT (A). We find that there is nothing on record to indicate that the assessee had filed any additional or fresh evidence before the CIT (A). Therefore we do not find any merits in the grounds raised by the Revenue. The impugned order of CIT (A) is upheld. 13. In the result, appeal of the Revenue is dismissed. Order pronounced in the open court on 20th day of April, 2016. - - TaxTMI - TMITax - In ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
