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TMI Blog2018 (6) TMI 1037X X X X Extracts X X X X X X X X Extracts X X X X ..... er passed by the Deputy. Commissioner of Income Tax, Circle : 12(1), New Delhi, under section 115WE(3) of the Income Tax Act, 1961. 2. I.T. Appeal No. 3273 (Del) of 2013 is filed by the assessee raising following grounds of appeal :- " 1. That the CIT (Appeals) erred on facts and in law in upholding the addition of Rs. 22,53,344, being 20% of expenditure of Rs. 1,12,66,722 incurred on account of conveyance, to the value of fringe benefits under section 115WC read with section 115WC(l)(c) of the Income-tax Act, 1961 ('the Act'). 1.1 That the CIT (Appeals) erred on facts and in law in observing that there were some factual inconsistencies in the information qua details of conveyance expenses offered for FBT, filed by the appellant. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and in law in not appreciating that the expenditure incurred towards advertisement, publicity and sales promotion was exempt from being deemed as fringe benefit, in terms of proviso to section 115WB(2)(d) of the Act. 2.2 Without prejudice, that the CIT (Appeals) erred on facts and in law in not appreciating that no fringe benefit accrued to employees from advertisement expenditure incurred by the appellant for the purposes of business to be subjected to fringe benefit tax under section 115WA of the Act. The appellant craves leave to add to, alter, amend, or vary the above grounds of appeal at or before the time of hearing. " 3. I.T. Appeal No. 3691 (Del) of 2013 filed by the Revenue raising the solitary ground of appeal in reduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to clause (d) of section 115WB(2) of the Act. The learned CIT (Appeals) held that assessee could not produce the bills of Rs. 9.02 crores, but only sample bills were produced, hence, he disallowed 50% thereof and accordingly held it as taxable. 6. The learned authorized representative submitted that before the learned CIT (Appeals) the assessee has submitted an application under Rule 46A for admission of additional evidences. Assessee submitted a copy of the sample bills of the service providers and the advertising agency that such expenditure is exempt from FBT. He further relied upon the decision of the Co-ordinate Bench in the case of T.V. Today Network Ltd. Vs. DCIT (2013) 38 taxmann.com 409. He further stated that assessee has submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtly was erroneous. Further Co-ordinate Bench has held that Fringe Benefit Tax is not leviable on channel placement charges paid to cable operators by T.V. Channel Companies. Therefore, respectfully following the decision of the Co-ordinate Bench, we also hold that addition upheld by the learned CIT (Appeals) deserves to be deleted. Though assessee has submitted the sample invoices, but they show that on these expenditure, fringe benefit tax is not chargeable. In view of this, we dismiss ground No. 1 of the appeal of the Revenue and allow ground No. 2 of the appeal of the assessee. 9. Now coming to the appeal of the assessee vide ground No. 1 the assessee has challenged the addition of Rs. 22,53,344/- being 20% of the expenditure of Rs. 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e place of the work. The above expenditure is with respect to the free transportation facilities provided to its employees. The assessee has submitted the detail charts starting from page No. 19 to page No. 24 of the paper book. The expenditure are with respect to the monthly bus hire charges and tempo travel charges. It also included the many bus hire charges at respective locations. However, at its Gurgaon office it has debited a sum of Rs. 40 lakhs paid to M/s. Varun Voyages. The copy of the agreement with M/s. Varun Voyages are claimed by the Revenue authorities that it does not only include the transportation of the staff, but to other members also. The learned CIT (Appeals) has also noted that the assessee has not furnished the comple ..... X X X X Extracts X X X X X X X X Extracts X X X X
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