TMI Blog2020 (9) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... ee's appeal in respect of dealers trading expenses and sales promotion expenses. It is pertinent to note that the Tribunal has recorded a finding that expenditure incurred by the assessee on sales promotion had no nexus on employer-employee relationship and for expenses incurred in holding dealers meet, the question of employer-employee relationship does not arise. Therefore, the order passed by the Commissioner of Income Tax (Appeals) was rightly upheld. - Decided in favour of assessee. - I.T.A. NO. 491 OF 2013 - - - Dated:- 8-9-2020 - THE HON'BLE MR. JUSTICE ALOK ARADHE And THE HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD FOR THE PETITIONER : SRI. K. V. ARAVIND, ADV FOR THE RESPONDENT : SRI. CHYTHANYA K. K. ADV ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her held that the employees have not derived any benefit from the expenses incurred for the purposes of sales, promotion does not in any way exempt the expenses from being treated as deemed fringe benefits. The Assessing officer therefore, determined the taxable value of fringe benefits at ₹ 8,72,69,690/-. The assessee challenged the aforesaid order in appeal. The Commissioner of Income Tax (Appeals) by an order dated 21.06.2012 allowed the assessee's appeal in respect of dealers training expenses and sales promotion expenses. The aforesaid order was subject matter of challenge at the instance of the revenue before the Income Tax Appellate Tribunal (hereinafter referred to as 'the Tribunal' for short). The Tribunal by an o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly or indirectly, provided by an employer, whether by way of reimbursement or otherwise, to his employees (including former employee or employees); (b) any free or concessional ticket provided by the employer for private journeys of his employees or their family members; (c) any contribution by the employer to an approved superannuation fund for employees; and (d) any specified security or sweat equity shares allotted or transferred, directly or indirectly, by the employer free of cost or at concessional rate to his employees (including former employee or employees). Explanation.-For the purposes of this clause,- (i) specified security means the securities as defined in clause (h) of section 2 of the Securities Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferable pre-paid electronic meal card usable only at eating joints or outlets and which fulfils such other conditions as may be prescribed6; (C) conference (other than fee for participation by the employees in any conference). Explanation.-For the purposes of this clause, any expenditure on conveyance, tour and travel (including foreign travel), on hotel, or boarding and lodging in connection with any conference shall be deemed to be expenditure incurred for the purposes of conference; (D) sales promotion including publicity: Provided that any expenditure on advertisement,- (i) being the expenditure (including rental) on advertisement of any form in any print (including journals, catalogues or price lists) or electronic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilarly, the expenses incurred by the assessee towards sales promotion cannot be taxed in view of provision contained in Section 115WB(2)(d) of the Act. The Commissioner of Income Tax (Appeals) therefore, rightly allowed the assessee's appeal in respect of dealers trading expenses and sales promotion expenses. It is pertinent to note that the Tribunal in para 3.5.2 itself has recorded a finding that expenditure incurred by the assessee on sales promotion had no nexus on employer-employee relationship and for expenses incurred in holding dealers meet, the question of employer-employee relationship does not arise. Therefore, the order passed by the Commissioner of Income Tax (Appeals) was rightly upheld. In view of preceding analysis, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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