2012 (9) TMI 1066

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of Rs. 6,65,83,073/- from Fringe Benefit Tax, without appreciating the facts brought on record by the AO during assessment proceedings and remand proceedings as well. 2. On the facts and in the circumstances of the case and in law, the CIT(A) erred in excluding Promotion event expenses of Rs. 1,18,44,009/- from Fringe. The appellant prays that the order of the CIT(A) on the above ground be set asked and that of the ITO/ACIT/DCIT be restored." 3. Briefly stated the facts of the case are that for the year under consideration, the assessee company filed its return of fringe benefit tax (FBT) at Rs. 1,64,81,201/-. Notice u/s. 115WD was issued and served on the assessee on 26.10. 2007. The assessee was asked to file the details of reconciliat....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the assessee, the Ld. CIT(A) allowed the appeal and directed the AO to exclude the expenses from FBT. 5. The Revenue is aggrieved by this finding of Ld. CIT(A). Before us, the Ld. Departmental Representative supported the findings of the AO and submitted that inspite of sufficient opportunities provided to the assessee by the AO, the assessee failed to substantiate its claim. The Ld. Counsel for the assessee submitted that in its return of FBT, the assessee has duly considered the amount liable for FBT incurred under the head Sales Promotion including publicity. The assessee has only excluded those amounts which come under the exemptions under the scheme of FBT as explained by the CBDT vide its Circular 8/2005 dt. 29.8.2005. It was further....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t card customers and, if so, whether FBT is payable thereon? Ans. Sales discount or rebates allowed to wholesale dealers or customers from the listed retail price merely represent lesser realization of the sale price itself. The bonus points given to credit card customers are also in the nature of deferred sale discount. Therefore, discounts or rebates or bonus points allowed to customers or wholesale dealers are in the nature of selling expenses and outside the scope of the provisions of clause (D) of sub-section (2) of Section 115WB of the I.T. Act. Accordingly, such discounts or rebates are not liable to FBT. Q. No. 61 Whether expenditure on incentives given to distributors for meeting quantity targets (including free goods for achie....