What did the Tribunal hold?

The Tribunal dismissed the appeal based on the tax effect being below the threshold stipulated by CBDT Circular No. 21/2015. The merits of the addition were not adjudicated.

The Assessing Officer appealed the CIT(A)'s deletion of an addition to Fringe Benefit Tax. The addition was related to advertisement, car maintenance, and travelling expenses.

What were the issues?

Whether the expenditure incurred on advertisement, sales promotion, and sales coupon had an element of fringe benefit to employees. The primary reason for dismissal was the low tax effect.

DCIT vs M/S. Japan International | ITAT Ahmedabad 2018

Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH, AHMEDABAD

By way of this appeal, the Assessing Officer has challenged correctness of the

order dated 11.11.2013, passed by the learned CIT(A)-VI, Ahmedabad for the

assessment year 2007-08, on the following grounds :-

“(1) The CIT(A) has erred in law and on facts by deleting the addition to the value of Fringe Benefit amounting to Rs.28.69 lacs by way of advertisement, car maintenance and travelling expenses.

(2) The CIT(A) has not appreciated the fact that expenditure incurred on advertisement, sales promotion and sales coupon has an element of Fringe Benefit to employees which is covered by the deeming provision of section 115WB(2)(D).

On the facts and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of the Assessing Officer to the extent mentioned above since the assessee has failed to disclose his true income/book profit”

ITA No.287/Ahd/2014 Assessment Year: 2007-08 Page 2 of 2

I have noticed that the tax effect involved in this appeal is less than

Rs.10,00,000/-. In view of this undisputed fact and in the light of CBDT Circular No.21/2015 dated 10th December, 2015, I am of the considered view that this appeal is

liable to be dismissed as withdrawn for the simple reason that tax effect involved in this

appeal is less than Rs.10,00,000/-. In the result, appeal is dismissed. Pronounced in the open Court on this 29th day 3. of January, 2018. Sd/- Pramod Kumar (Accountant Member) Dated: Ahmedabad, the 29th day of January, 2018.

PBN/* Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) DR (6) Guard File By order

Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad

THE DCIT, CIRCLE-3, AHMEDABAD vs. M/S. JAPAN INTERNATIONAL, AHMEDABAD

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

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