2013 (7) TMI 254

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....on cannot be charged under Fringe Benefit Tax (FBT). 2. The assessee in the present case is a company which is engaged in the business of generation, purchase, transmission and distribution of electricity. The return of income for the year under consideration was originally filed by the assessee on 3-9-2008 which was subsequently revised on 26-3-2010. In the revised return, the total value of fringe benefits was disclosed by the assessee at Rs. 11,03,26,722/-. During the course of assessment proceeding, it was noticed by the A.O. that the assessee had incurred expenditure of Rs. 16,52,12,628/- under the head "Brand Equity" which was claimed to be not liable for FBT. It was however noted by the A.O. that the said expenditure represented t....

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....l of the Revenue is squarely covered in favour of the assessee by the decision of the co- ordinate Bench of the Tribunal in the case of ACIT vs. Tata Motors Ltd., another group concern, rendered vide its order dtd. 23-11-2012 in ITA No. 8297/M/2011 for A.Y. 2008-09 wherein a similar issue has been decided by the Tribunal in favour of the assessee for the following reasons given in para No. 5 to 7 of its order :- "5. We have heard both the parties, perused the orders of the Revenue Authorities as well as the decisions filed before us. So far as the decision of the Tribunal In the case of H.V. Transmissions Limited vs. ACIT (supra) is concerned, we find para 4 is relevant for the proposition that when there is no direct or indirect benefit....

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....oncern. Thus, there is no direct or indirect benefit has accrued to the employees of the appellant company. Therefore, in our opinion, FBT cannot be levied on brand promotion expenses. Cases relied upon by the AR also support the submissions made by him. Respectfully following the decisions delivered by the Bangalore and Mumbai Bench of the Tribunal in the cases M/s Toyota Kirloskar Motor P. Ltd. (supra), Kotak Mahindra Old Mutual Life Insurance Ltd., (supra) and M/s. Tata Asset Management Ltd (supra), we decide all the three effective grounds of the appeal in favour of tile assessee-company. We find that issues under consideration have been decided in favour of the appellant by the said decisions." 6. Further, we have also perused the o....