2018 (4) TMI 1136

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....E, JJ. Mr. Tejveer Singh, for the Appellant in all the Appeals. Mr. Hiten Chande i/b. PDS Legal, for the Respondent in all the Appeals. P.C: This Appeal under Section 260A of the Income Tax Act, 1961 (the Act), challenges the order dated 20th February, 2015 passed by the Income Tax Appellate Tribunal (the Tribunal). The common impugned order dated 20th February, 2015 is in respect of A....

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....sessment Years 2007-08, 2008-09 and 2009-10. Therefore, this common order considering the four appeals from common impugned order dated 20th February, 2015 of the Tribunal, raising identical question, for our consideration. 4. The Respondent is engaged in manufacture and trading of pharmaceutical products. The Respondent in its return of Fringe Benefit Tax (FBT) declared total income at Rs. ....

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....th July, 2011, the CIT(A) dismissed the appeal, upholding the view of the Assessing Officer that in view of the deeming provision in Section 115WB(2) of the Act, all expenditures mentioned therein would be subject to FBT in terms of Section 115WA of the Act.   6. On further appeal, the Tribunal by the impugned order allowed the Respondent's appeal. This by holding on facts that it is u....

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.... two decisions, this Court has taken a view that the basis of FBT is that, the expenditure must arise out of employee/ employer relationship. The payment made to third party does not arise out of employee/ employer relationship and, therefore, cannot be subjected to FBT. Mr. Tejveer Singh, learned Counsel for the Revenue does not dispute the above position viz: issue is concluded by the above deci....