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TMI Blog2021 (4) TMI 1155X X X X Extracts X X X X X X X X Extracts X X X X ..... ey were clubbed and heard together and, therefore, a common order is passed for the sake of convenience. 2. The grounds raised in all these appeals are common, except the quantum of additions, which are as under: "1. Your appellant submits that the CIT (A), Vijayawada, erred in law and on facts of the case in confirming the addition of Rs. 6,87,69,125/- as taxable Fringe Benefits towards employees' welfare, ignoring the fact that your appellant was under a statutory obligation to provide electricity to the. employees at their residential premises as per National Coal Workers' Agreement. 2. Your Appellant submits that CIT(A), Vijayawada, ought to have accepted the explanation provided by your appellant regarding the facts and ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lectricity supplied to the residential quarters provided to its employees. He, therefore, asked to furnish details of electricity consumed by each residential quarter during the year and further pointed out that why the said expenditure should not be treated as perquisite in the hands of the employees. The break of the expenditure is as under: Sl. No. Description FY 2005-06 A Total electricity expenditure claimed 1993007388 B Business Expenditure (Ac(b)) 1642637453 C Colonies and street lighting a) Street Lighting - 47777718 b) Colonies consumption - 350369953 398147653 1) Colonies consumption 350369935 2) Less: Elec. Charges recovered from employees i. Executives 4999479 3) Less: Elec. Charges recovered from outsiders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te the occupational hazard in coal mining. Finally, the assessee contended that Employee's welfare U/s 115WB(E) does not include any expenditure incurrent or payment made to (1) fulfill any statutory obligation, or (2) mitigate occupational hazards according to the explanation given under sub-c1ause(e) of Sub-Section 2 of section 115WB of the Income Tax Act, 1961." 4.3 The AO did not accept the explanation offered by the assessee for the following reasons: "a) The expenditure incurred by the assessee by way of providing electricity to its employees 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 st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s provided as a statutory obligation and also to mitigate the occupational hazards and hence it is not a Fringe Benefit as per explanation to sub-clause (E) of sub-section 2 of Section 115WB of the Act. The AO rejected the appellant's explanation stating that the National Coal Wages Agreement (NCWA), on which the appellant relied, is not statutory and only a facility provided to the employees. He further held that since the electricity was provided to the residential quarters of the employees, it is not a facility provided to mitigate 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 eviden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income Tax Act, 1961. 7. The ld. DR, on the other hand relied on the orders of revenue authorities and submitted that the expenditure incurred by the assessee by way of providing electricity to its employees 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. 8. We have considered the rival submissions and perused the 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 electric ..... X X X X Extracts X X X X X X X X Extracts X X X X
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