TMI Blog2021 (4) TMI 1155X X X X Extracts X X X X X X X X Extracts X X X X ..... income-tax Act, which is enacted by the Parliament. The above agreement is not statutory and only a facility provided to the employees in a particular sector. In view of the above discussion, we do not find any infirmity in the orders of the CIT(A) in confirming the order of the AO wherein the AO has made an addition in the hands of the assessee towards Fringe benefit tax on account of expenditure pertaining to staff towards electricity consumption and upholding the orders of CIT(A) in all the appeals under consideration, we dismiss the grounds raised by the assessee in all the AYs under consideration. - ITA Nos. 881, 883 & 885/H/2014 - - - Dated:- 23-4-2021 - SHRI SATBEER SINGH GODARA , JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU , A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Sub-section 2 of section 115WB of the Income Tax Act, 1961. The CIT (A), failed to appreciate that National Coal Workers Agreement was a statutory document binding on your appellant, who is also a party to the agreement. 3. To dispose of these appeals, we refer to the facts from AY 2006-07 and the decision taken in this year of appeal shall apply mutatis-mutandis in other appeals also. 4. Briefly the facts of the case are the assessee filed its fringe benefits in the combined return of income in form no. 2D for AY 2006-07 admitting taxable value of fringe benefits at ₹ 7,98,31,913/-, which was processed u/s 115WE(1) of the Act. Subsequently the case was selected for scrutiny as per the norms laid down by the CBDT. In respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3) Less: Elec. Charges recovered from outsiders 1524831 Net amount 343845625 4.2 The assessee vide its written submissions dated 11/02/2010 filed on 15/02/2010 stated as under: SCCL meets its requirement of electricity power through procurement of electricity units from AP TRANSCO and generation of electricity in its own captive power plants. Major part of the power consumption is met through purchase from AP TRANSCO while the power generated from its two small and decades old power plants each small in quantity. Out of the power purchased and generated, a small quantity of electricity power is als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yees at free of cost/concessional rate is not for fulfilling statutory obligation since the agreement between the management of the assessee company and the Coal Workers Association is not statutory and only a facility provided by the company to its employees. b) Provision of electricity at free of cost/at concessional rate does not mitigate the occupational hazards of the assessee company since the electricity provided is to the residential quarters of the employees of the company and not to the mines. 4.4 Since the assessee was unable to furnish the consumption of electricity by each residential quarter by stating that it cannot quantify and ascertain as such residential quarter was not provided with separate meters, the AO show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate the occupational hazards of the appellant's company. 5.1 During the course of appeal hearing also, the learned A.R has made the same arguments which were put forth before the AO and no further evidence / additional. information was furnished. It is a fact that the electricity was provided to the residential quarters of the employees of the appellant and hence it cannot be said that it is provided to mitigate the occupational hazards. Further, the appellant has also failed to establish that this facility is provided under a statutory obligation. The AO after considering the details submitted by the appellant such as National Coal Wages Agreement (NCWA), on which the appellant relied, had held that it is not statutory and only a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e material on record as well as gone through the orders of revenue authorities. On going through the NCWA agreement dated 12th January, 2004, vide Chapter VIII under clause 8.3.0 under the head recovery of electricity charges, it is mentioned as under: In the Coalfield areas where the employees are provided with quarters by the Management and also electricity from the bulk supply obtained by them from the electricity boards or other agencies, the employees shall be entitled to a free consumption of 30 KWH per quarter per month on a uniform basis. For consumption beyond this limit, the employees will be required to pay at the same rate at which the Electricity Supply Undertakings charge the Coal Companies. 8.1 On going through ..... X X X X Extracts X X X X X X X X Extracts X X X X
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