TaxTMI 
TaxTMI 
2015 (6) TMI 932
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....0 of the Income Tax Act, 1961 by the Commissioner of Income-tax (Appeals)-Gandhinagar, Ahmedabad presents this appeal against the same on the following grounds which are without prejudice to each other: 1. The order passed by the CIT(A) is erroneous & requires to be modified. It is submitted that it be so held now. 2. The CIT(A) has erred in confirming and justifying the action of the AO & holding that appellant was liable to payment of Fringe Benefit Tax under provisions of chapter XII-H of the Act even after observing that in fact & law the appellant does not have any employee. 3. The CIT(A) has erred in confirming that there exists a master servant relationship between the appellant & its consultants ignoring the fact that the appella....
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....cided by the Coordinate Bench (ITAT 'C' Bench Ahmedabad) in assessee's own case for AY 2006-07 in ITA No.906/Ahd/2010 vide order dated 01/05/2013. He further submitted that the Coordinate Bench (ITAT 'C' Bench Ahmedabad) in another ITA No.2065/Ahd/08 for AY 07-08, order dated 31/05/2013, has followed the decision of the Coordinate Bench passed in ITA No.906/Ahd/2010(supra). He submitted that the facts are identical, therefore, the same view may be adopted. 3.1. On the contrary, ld.Sr.DR has supported the orders of the authorities below. However, he has not controverted the submission of the ld.counsel for the assessee that in the AYs 2006-07 & 2007-08 the similar issue was before the Coordinate Bench which has been decided in favour of ass....
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....only and not a contract of service. Not only these consultants get money on monthly basis, they also work full time for the company, their work is subject to the overall control of the company (may be controlled from the U.S.A.), they have also nominated one person as the controlling head or the project director. During the course of hearing, the Authorised Representative was very emphatic that the arrangements existed even before the Fringe Benefit Tax provisions came into existence and therefore this is a typical organizational structure of the company which needs to be appreciated and not a sham arrangement. The point of the Authorised Representative has been given due weightage, but on the other hand, one has to see the spirit behind th....
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.... purposes there existed an employeremployee - a master-servant relationship and therefore relying on the decision for assessment year 2006-07, for this assessment year also, it is held that the assessee is liable for Fringe Benefit Tax. The computation of the fringe benefit and the taxation thereon is, therefore, upheld." 4. In the year under consideration also, there has been no change with respect to the nature of expenses incurred by the so called nonemployees. It is seen from the assessment order, besides conveyance and tour expenses, there are other expenses like employee's welfare, entertainment, club membership etc. which shows there existed an employer-employee relationship and therefore I do not find any reason to deviate from....
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....07 was decided vide a order dated 31.12.2009, and the issue was decided against the assessee. Now before us, a copy of the order of the ITAT, Ahmedabad, Bench 'C' is placed on record, wherein for A.Y.2006-2007, while deciding the assessee's appeal i.e. Joshi Technologies International Inc., in ITA No.906/Ahd/2010 order dated 1.5.2013, it was concluded as under: "6.8. So the FBT is eligible only in a case where expenditure is incurred by the employer ostensibly for the purpose of business but includes partially a benefit of a personal nature passed on to the employee. But, a legitimate business expenditure not within the ambits of employer & employee relationship is outside the scope of FBT. In view of these observations, we her....