2020 (9) TMI 494

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.... The appeal was admitted by a bench of this Court vide order dated 09.10.2015 on the following substantial question of law: (i) Whether on the facts and in the circumstances and in law the Tribunal was correct in holding that fringe benefits brought to tax on account of Sales Promotion Expenses, and conference charges does not attract provisions of Section 115WB of the Act, as the same were incurred to a third person and recovered perverse finding? (ii) Whether the Tribunal committed an error in not appreciating the fact that certain expenses incurred by the assessee were directly attributable to the benefit of the and recorded a perverse finding? 2. Facts leading to filing of this appeal briefly stated are that the as....

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....e Tax (Appeals). In the aforesaid factual background, this appeal has been filed. 3. Learned counsel for the revenue has invited the attention of this court to circular dated 29.08.2005 and has submitted that employer-employee relationship is not a prerequisite for levy of fringe benefit tax. It is further submitted that the Assessing officer rightly determined the taxable value of fringe benefits and the Commissioner of Income Tax (Appeals) grossly erred in interfering with the order passed by the Assessing officer and the Tribunal erred in upholding the order passed by the Commissioner of Income Tax (Appeals). On the other hand, learned counsel for the respondent supported the order passed by the Income Tax Appellate Tribunal and has i....

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.... (ii) "sweat equity shares" means equity shares issued by a company to its employees or directors at a discount or for consideration other than cash for providing know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called. (2) The fringe benefits shall be deemed to have been provided by the employer to his employees, 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 any payment for, the following purposes, namely:- (A) entertainment; (B) provision of hospitality of every kind by ....

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....r or exhibition; (iii) being the expenditure on sponsorship of any sports event or any other event organised by any Government agency or trade association or body; (iv) being the expenditure on the publication in any print or electronic media of any notice required to be published by or under any law or by an order of a court or tribunal; (v) being the expenditure on advertisement by way of signs, art work, painting, banners, awnings, direct mail, electric spectaculars, kiosks, hoardings, bill boards, display of products or by way of such other medium of advertisement; (vi) being the expenditure by way of payment to any advertising agency for the purposes of clauses (i) to (v) above; (vii) being ....