Joshi Technologies International Inc.,, Ahmedabad v. The ADIT.,(Intnl.Taxn.), Ahmedabad

ITA 2065/AHD/2010 | 2007-2008
Pronouncement Date: 31-05-2010 | Result: Allowed

Appeal Details

RSA Number 206520514 RSA 2010
Assessee PAN AAACJ9592P
Bench Ahmedabad
Appeal Number ITA 2065/AHD/2010
Appellant Joshi Technologies International Inc.,, Ahmedabad
Respondent The ADIT.,(Intnl.Taxn.), Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 31-05-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 31-05-2010
Date Of Final Hearing 29-05-2013
Next Hearing Date 29-05-2013
Assessment Year 2007-2008
Appeal Filed On 15-06-2010
Judgment Text
C IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD C BENCH . .. . . .. .'#$% '#$% '#$% '#$% & & & & ' ' ' ' BEFORE S/SHRI MUKUL KR. SHRAWAT JUDICIAL MEMBER AN D A.K GARODIA ACCOUNTANT MEMBER) ITA NO.2065/AHD/2010 [ASSTT. YEAR : 2007-2008] JOSHI TECHNOLOGIES INTERNATIONAL INC. 402 HERITAGE OFF ASHRAM ROAD OFF. ASHRAM ROAD USMANPURA AHMEDABAD. PAN : AAACJ 9592 P ( /VS. ADIT (INTNL. TAXN) AHMEDABAD. ( (( (*+ *+ *+ *+ / APPELLANT) ( (( ( -*+ -*+ -*+ -*+ / RESPONDENT) ( . / 0 / ASSESSEE BY : SHRI SANJAY R. SHAH / 0 / REVENUE BY : SHRI SADASHIV OHOL SR.DR (2 / 3&/ DATE OF HEARING : 29 TH MAY 2013 4#5 / 3&/ DATE OF PRONOUNCEMENT : 31/5/2013 6 / O R D E R PER MUKUL KR. SHRAWAT JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE ARISING FROM AN ORDER OF THE CIT(A) GANDHINAGAR DATED 18.03.2010 AND THE SUBSTANTIVE G ROUNDS ARE GROUND NO.2 AND 3 REPRODUCED BELOW: 2. THE CIT(A) HAS ERRED IN CONFIRMING AND JUSTIFYI NG THE ACTION OF THE AO & HOLDING THAT APPELLANT HAS LIABL E TO PAYMENT ITA NO.2065/AHD/2010 -2- OF FRINGE BENEFIT TAX UNDER PROVISIONS OF CHAPTER X II-H OF THE ACT EVEN AFTER OBSERVING THAT IN FACT & LAW THE APP ELLANT DOES NOT HAVE ANY EMPLOYEE. 3. THE CIT(A) HAS ERRED IN CONFIRMING THAT THERE EX ISTS A MASTER SERVANT RELATIONSHIP BETWEEN THE APPELLANT A ND ITS CONSULTANTS IGNORING THE FACT THAT THE APPELLANT DO ES NOT PAY ANY BENEFITS OF AN EMPLOYEE TO THE CONSULTANTS. 2. FACTS OF THE CASE AS EMERGED FROM THE ASSESSMEN T ORDER PASSED UNDER SECTION 115WE(3) OF THE I.T.ACT DATED 29.12.2 009 FOR A.Y.2007-2008 THE ORDER UNDER APPEAL ARE IDENTICA L WITH THE FACTS OF THE ASSESSEES CASE FOR A.Y.2006-2007. RATHER THE LEARNED CIT(A) VIDE PARA 5 HAS ACKNOWLEDGED THIS FACT THAT A SIMIL AR APPEAL OF THE ASSESSEE FOR A.Y.2006-2007 WAS DECIDED VIDE A ORDER DATED 31.12.2009 AND THE ISSUE WAS DECIDED AGAINST THE A SSESSEE. NOW BEFORE US A COPY OF THE ORDER OF THE ITAT AHMEDAB AD BENCH C IS PLACED ON RECORD WHEREIN FOR A.Y.2006-2007 WHILE DECIDING THE ASSESSEES APPEAL I.E. JOSHI TECHNOLOGIES INTERNATI ONAL INC. IN ITA NO.906/AHD/2010 ORDER DATED 1.5.2013 IT WAS CONCLU DED AS UNDER: 6.8. SO THE FBT IS ELIGIBLE ONLY IN A CASE WHERE E XPENDITURE IS INCURRED BY THE EMPLOYER OSTENSIBLY FOR THE PURPOSE OF BUSINESS BUT INCLUDES PARTIALLY A BENEFIT OF A PERSONAL NATURE P ASSED ON TO THE EMPLOYEE. BUT A LEGITIMATE BUSINESS EXPENDITURE NO T WITHIN THE AMBITS OF EMPLOYER & EMPLOYEE RELATIONSHIP IS OUTSI DE THE SCOPE OF FBT. IN VIEW OF THESE OBSERVATIONS WE HEREBY HOLD THAT THE FBT PROVISIONS HAVE WRONGLY BEEN INVOKED IN THE PRESEN T CASE. WE HEREBY REVERSE THE LEGAL FINDINGS OF THE AUTHORITIE S BELOW AND DIRECT THE AO TO GIVE RELIEF ACCORDINGLY. GROUNDS ARE ALLO WED. SINCE A VIEW HAS ALREADY BEEN TAKEN BY A RESPECTED CO-ORDINATE BENCH THEREFORE WE HAVE NO REASON TO DEVIATE FROM THE SA ID VIEW BEING PRONOUNCED ON IDENTICAL FACTS HENCE RESPECTFULLY F OLLOWING THE SAME ITA NO.2065/AHD/2010 -3- FOR THIS YEAR AS WELL WE HEREBY REVERSE THE FINDIN GS OF THE AUTHORITIES BELOW AND ALLOW THESE GROUNDS OF THE ASSESSEE. 3. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( . .. . . .. .'#$% '#$% '#$% '#$% /A.K. GARODIA) & & & & /ACCOUNTANT MEMBER ( /MUKUL KR. SHRAWAT) /JUDICIAL MEMBER C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR ITAT. BY ORDER DR/AR ITAT AHMEDABAD