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TMI Blog2020 (11) TMI 911X X X X Extracts X X X X X X X X Extracts X X X X ..... his Court vide order dated 08.07.2013 on the following substantial questions of law: (i) Whether in the given facts and circumstances of the case, the tribunal is correct in law in holding that the assessee is not liable for fringe benefit tax in respect of reimbursement of medical expenses to the employees upto Rs. 15,000/- without appreciating the fact that such amount is not subject to tax in the hands of the employee inasmuch as the medical expenses in excess of Rs. 15,000/- is only considered as perquisites as per proviso (v) to sub section (2) Section 7 of I.T.Act? (ii) Whether in the given facts and circumstances of the case, the tribunal is correct in law in deleting the addition made by the assessing authority by merely placing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... virtue of deeming provisions of Section 115WB(2), there is no distinction between expenses incurred towards employees and towards non employee? (vi) Whether in the given facts and circumstances of the case, the tribunal is correct in law in deleting the addition made by the assessing authority by merely placing reliance on it's own decision in the case of M/s Toyota Kirloskar Motors Pvt. Ltd in ITA No.20/Bang/2011 and 88/B/2011, without appreciating the fact that the said orders have not been accepted by revenue and appeals are pending before this Hon'ble court for adjudication? 2. Facts leading to filing of this appeal briefly stated are that the assessee is engaged in the business of computer software as well as other diverse a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by the employees to the approved hospitals and the subsequent reimbursement of such payments to the employees by the employer do not attract fringe benefit tax. It was further held that treating the payment towards fees, venue hiring charges etc for the trainees enrolled as students of Birla Institute of Technology and Science and treating the scholarships given to the trainees is covered by decision of the tribunal in the case of M/s Toyota Kirloskar Motors Pvt. Ltd and the same is not liable to fringe benefit. It was also held that expenses incurred by the assessee towards repairs, running and maintenance of motor cars are concerned, since, there is no material on record as to what extent the cars were used for personal or profession ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, it is submitted that untaxed amount is taxed as fringe benefits in the hands of the employer. It is also urged that expenses incurred on bundling of the products is not in the nature of purchase and not cost of sales promotion. Therefore, Assessing Officer has rightly added 20% of the total expenses incurred by provisions of Section 115WB(2D) of the Act. It is also submitted that as per sub-Section (2) of Section 115WB the fringe benefit tax is chargeable even if there is no employer- employee relationship and if expenses have been incurred for the purposes specified in Clause (A) to (Q), which includes Clause (D) of Section 115WB. 4. It is also urged that Assessing Officer has rightly rejected scholarship expenses incurred by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, out of the purview of fringe benefit tax. It is also submitted that the assessee in the course of sales of fast moving customer goods bundle has paid for bundled product indirectly and the same is not accessible to fringe benefit tax. While inviting our attention to a letter of enrollment for post graduate courses, a student has been enrolled who is not an employee of the assessee. The payment was made to the BIDS Pillani for expenses and BIDS Pillani is not the employee of the assessee. It is also urged that expenses incurred by the assessee was not towards scholarship but in fact expenses incurred at BIDS Pillani, therefore, the provisions of fringe benefit tax do not apply to the fact situation of the case. In support of afore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 17(1) of the Act the employees are taxed beyond Rs. 15,000/- and if Rs. 15,000/- which is exempt in the hands of the employees is not liable for fringe benefit tax but over and above the aforesaid amount is liable for fringe benefit tax. 6. So far as issue pertaining to expenses incurred by the assessee on bundling of product is concerned, it is pertinent to note that effectively the bundling is not done free of cost as customer pays for the bundled project indirectly. The Delhi High court while considering the aforesaid issue in the case of T & T Motors Ltd. supra has held that expenses incurred in bundling of products are not exigible to levy of fringe benefit tax. It has further been held that expenditure for the purpose of busi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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