WINTAC LTD. Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act' for short) has been filed by the assessee against the order dated 31.10.2014 passed by the Income Tax Appellate Tribunal. The subject matter of the appeal pertains to the Assessment Year 2008- 09. The appeal was admitted by a Bench of this Court on the following substantial question of law:

(2.) Facts leading to filing of this appeal briefly stated are that the assessee is a company which is engaged in the business of manufacture of pharmaceutical products. The assessee had filed return of income in respect of fringe benefits for the Assessment Year 2008-09 on 19.09.2008 and had declared the total value of fringe benefits as enumerated under Section 115WE of the Act as NIL. The order of assessment under Section 115WE of the Act was passed by the Assessing Officer on 18.11.2010 by which the Assessing Authority accepted the return filed by the assessee and treated the total value of fringe benefits as NIL. The Commissioner of Income Tax (Appeals) invoked the powers under Section 263 of the Act and issued a notice dated 11.03.2013 to the assessee. The Commissioner of Income Tax (Appeals), by an order dated 30.03.2013, inter alia held that the order passed by the Assessing Authority is erroneous and is prejudicial to the interest of the revenue as the Assessing Authority has not considered the items namely vehicle maintenance of Rs.24,83,836/-, traveling and conveyance amount for a sum of Rs.22,37,001/- and pooja expenses to an extent of Rs.1,35,711/-. It was held that the aforesaid amounts attracted fringe benefit tax under Section 115WE of the Act. Accordingly, the aforesaid amounts were brought to tax. Being aggrieved, the assessee filed an appeal before the Income Tax Appellate Tribunal. The Tribunal, by an order dated 31.10.2014, dismissed the appeal preferred by the assessee. In the aforesaid factual background, this appeal has been filed.

(3.) Learned counsel for the assessee, at the outset, while inviting the attention of this Court to paragraph 6.4 of the order passed by the Tribunal, submitted that the claim of the assessee under Section 115WE of the Act in respect of fringe benefits has not been considered on merits by the Tribunal while deciding the appeal and the impugned order therefore be set aside and the matter be remitted to the Tribunal for decision afresh on merits with regard to the claim of the assessee in respect of fringe benefits. On the other hand, learned counsel for the revenue has supported the order passed by the Tribunal.