CIT v. Tata Consultancy Services Ltd.

The Nrk Co, Mumbai vs. Jtcit (OSD) Cir 15(1), Mumbai

In the result, appeal of the assessee is allowed

Bench: Shri Mahavir Singh, Jm & Shri M.Balaganesh, Am M/S. The Nrk Company Vs. Additional Commissioner Of C/O/ Karnavat & Co. Income Tax 2A, Kitab Mahal Range – 15(1), Mumbai 1St Floor, 192, Dr. D.N.Road Mumbai – 400 001 Pan/Gir No. Aadft5351L (Appellant) .. (Respondent)

…ld that the existence of employer-employee relationship is a pre-requisite for levy of fringe benefit tax. Reliance in this regard is placed on the decision of Hon’ble Jurisdictional High Court in the case of CIT vs. Tata Consultancy Services Ltd. reported in 374 ITR 112(Bom). We find that the issue in dispute before us had been directly addressed by the Co-ordinate Bench decision of Amritsar Tribunal in the case of GDPA Fasteners vs. Addl. CIT reported in 185 TTJ 706 dated 21/02/2017 wherein the relevant head notes are reproduced hereunder:- “Fringe benefit—Changeability—Expenses incurred by partners— Provision…

Piramal Glass Ltd, Mumbai vs. Asst CIT Cen Cir 6(3), Mumbai

In the result, appeal filed by the assessee is allowed

Bench: Shri B.R. Baskaran (Am)& Ramlal Negi (Jm)

…t the employees are liable to fringe benefit tax or not. It was brought to our notice that this issue has been decided in favour of the assessee by the decision rendered by Hon'ble Bombay High Court in the case of CIT Vs. Tata Consultancy Services Ltd. (2015) 374 ITR 112, wherein Hon'ble Bombay High Court held that the basis of fringe benefit tax emanate out of employer and employee relationship and hence the payment made to a person out of contractual agreement would not be liable to fringe benefit tax. By following binding decision of Hon'ble Bombay High Court referred above, we set aside the order passed by th…

Aristo Pharmaceuticals P. Ltd, Mumbai vs. DCIT 2(1), Mumbai

In the result, appeal of assessee is allowed, as above

Bench: Shri G.S. Pannu & Shri Ram Lal Negi: (A.Y : 2006-07)

…ge of opinion. On merits of the addition also, assessee has pointed out that the action of the Assessing Officer is untenable and one of the arguments raised was based on the judgment of Hon'ble Bombay High Court in the case of Tata Consultancy Services Ltd., 374 ITR 112 (Bom.). 6. On the other hand, the ld. DR has relied upon the reasoning adopted by the Assessing Officer, which we have already adverted to in the earlier paras and is not being repeated for the sake of brevity. 5 M/s. Aristo Pharmaceuticals Pvt. Ltd. 7. We have carefully considered the rival submissions. The relevant facts are that the assessee…

Kanga & Co., Mumbai vs. A.C.I.T. (11)(2), Mumbai

In the result, appeal of the assessee is allowed

…isallowance on account of fringe benefit can be made within the provisions of Section 115WB. 4. We have considered rival contentions and found that the issue is covered by the decision of Hon’ble Bombay High Court in the case of Tata Consultancy Services ltd.,374 ITR 112, wherein it was held that employer and employee relationship is a pre-requisite for levy of fringe benefit tax. Respectfully following the order of Hon’ble Bombay High Court (supra), we do not find any merit in the action of lower authorities for making the assessee liable to pay fringe benefit tax in respect of payment made to the partners, who…