TaxTMI 
TaxTMI 
2014 (3) TMI 628
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....oyees and their families. 3. Since these appeals have been filed on similar facts, we are disposing them by this consolidated order by taking the facts of ITA No. 3508/Ahd/2010. 4. The AO has dealt the issue as under:- "2. It is seen that the assessee has not paid FBT on following Fringe Benefit Value related to non employees. i Welfare Expenses 697 ii. Brand Ambassador/Celebrities 1051000 iii Advertising - other marketing 293147 iv. Adverting - Event/PROMT 183051 Total 1527895 In this regard, on being inquired, the assessee vide submission dtd.25/12/2008 replied as under: - "Your good selves have asked the assessee to give details of calculation of FBT. The assessee submits the same vide Annexure-4 enclosed he....
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....es. In view of this, any expense which had not directly or indirectly resulted into the benefits to his employees will not be covered by provisions of fringe benefit tax. The AO taxed these expenses which have no nexus with the employee. Since these expenses are not for the benefit of employees, there should not be any fringe benefit tax of such expenses. In the accounts expenses may have nomenclature of the expenses similar to the one mentioned for the purpose of fringe benefit tax but one has to see whether there is any benefit to the employees from such expenses. However, Ld. CIT(A) confirmed the action of AO by observing as under:- "2.3 I have considered the facts of the case, assessment order and appellant's submission. It is no....
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....ss account is permitted and accordingly Assessing Officer is justified in applying the rates given in the act to arrive at the value of Fringe Benefit. The decision in the order of Hon'ble Gujarat High Court does not put any stay on the assessment or appeal proceeding in this matter. It only prescribes the mode of payment of Fringe Benefit Tax till appeal is disposed off. Since there is no order either of jurisdictional High Court or other court, wherein it is held that Fringe Benefit Tax is not payable in respect of expenses not incurred for the purpose of employees' benefit, therefore, I do not find any legal support for appellant's contention. In view of this, the addition to the value of Fringe Benefit made by the Assessing O....
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....tage is treated as the value of Fringe Benefit included Rs. 1,11,61,364/- in the value of Fringe Benefit for the purpose of Fringe Benefit Tax, which was confirmed in Appeal to the ld. CIT(A). The ld. A.R of the assessee has relied on the decision of Pune Bench of the Tribunal in case of Desai Brothers Ltd. vs. Additional CIT (supra) and Bangalore Bench of the Tribunal in case of M/s. Toyota Kriloskar Motor Pvt. Ltd. vs. ACIT (supra), wherein it was held that provisions of Fringe Benefit Tax cannot be invoked in respect of expenses which are not incurred on employees or their family members. It has also been held by the Tribunal in case of Toyota Kriloskar Motor Pvt. Ltd. vs. ACIT (supra) that expenditure in the nature of sales promotion, c....