2014 (11) TMI 339

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....of FBT and particularly retaining the additions (By CIT-A) respectively for the year I.T.A.Y. 2007-08 as per orders, not appreciating the provisions of the Act and instructions of CBDT on the various issues in respect of the values of FBT and interest charged as under:-   Rs. (a) Sales promotion Rs. 4,18,356/- (b) Travelling Expenses Rs. 6,73,166/- [Partly allowed by CIT(A)] (c) Conference Expenses Rs. 2,36,633/- (d) Interest Rs. 1,81,089/-   (2) The Learned CIT (Appeals) has erred in following the decision of his predecessor and not arriving at his own conclusions. (3) The Assessing Officer and Hon. CIT(Appeals) have erred in not considering the submissions made from time to time and have er....

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.... if the employer has, in the course of his business or profession (including any activity whether or not such activity is carried on with the object of deriving income, profits or gains) incurred any expense on, or made ny payment for, the following purposes, namely:- (A) -- (B) ---- (C) Conference (Other than fee for participation by the employees in any conference). Explanation.- For the purposes of this clause, any expenditure on conveyance, tour and travel (including foreign travel), hotel, or boarding and lodging in connection with any conference shall be deemed to be expenditure incurred for the purposes of conference; (D) Sales promotion including publicity: (i) Provided that any expenditure on advertisement,- (i) B....

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....nce:- "Whether "sales promotion expenses" includes brokerage and selling commission in relation to sales paid to direct selling agents/direct marketing agents and, if so, whether FBT is payable thereon? 58. Brokerage and selling commission paid for selling goods have been held by courts to be in the nature of ordinary selling expenses. Therefore, the expenditure on brokerage and selling commission is not expenditure for the purposes of 'sales promotion including publicity' within the meaning of clause (D) of sub-section(2) of Sec.115WB Accordingly, FBT is not payable on brokerage and selling commission paid for selling goods." 9. Now let us analyze the expenses incurred by the assessee. Sl. No. Head of expenses Details o....

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.... of the Id. A.O. Therefore, we remit back this issue to the file of Ld.A.O for verification and pass appropriate order as per law. 2) With respect to Item Nos.2 to 9 excluding item No.7 being Trade mark fee of Rs. 500/- which falls outside the purview of FBT, the nature of expenditure incurred by the assessee is also not clearly brought out in the order of Id.AO in order to determine the relevant provisions of the Act which could be invoked to bring the expenses under the net of FBT. Therefore, in the interest of justice this issue is also remitted back to the file of AO. 10. Thus the first ground viz. "Ld. Addl.CIT has erred in making the addition and Hon.CIT(A) have erred in sustaining the addition of Rs. 33,27,031/- being sales pro....