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TMI Blog2018 (7) TMI 941X X X X Extracts X X X X X X X X Extracts X X X X ..... find that Ld. CIT(A) has granted partial relief to the assessee by relying upon the decision of this Tribunal rendered in Jet Airways (India) Ltd. Vs. DCIT [2013 (1) TMI 722 - ITAT MUMBAI] as directed to value the tickets at par with the provisions made by the assessee with respect to frequent flier programme which would be further reduced by the amount recovered by the assessee from its employees in this regard - we confirm the stand of Ld. CIT(A) in this regard particularly when the revenue is unable to place on record any contrary judgment of any judicial authority. Accordingly, this ground as raised by revenue in the appeal and as raised in cross-objections, stands dismissed. Time limit for completion of assessments and reassessments - time barred assessment - Held that:- since the notice was issued on 06/11/2012, the re-assessment u/s 115WG was to be completed within 9 months from the end of the financial year i.e. by 31/12/2013. As against this, the assessment has been completed on 20/02/2014, which is clearly time barred as per statutory provisions of Section 153 (1B). This being the case, the assessment could not be said to have been framed within the ambit of statutory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment Order dated 22-03-2013 passed in contravention of law be declared null and void. Without prejudice to above 1) On the facts and circumstances of the facts and in law the learned C.I.T.(A) erred in directing the Assessing Officer to value Fringe Benefit in respect of free/concessional tickets to the employees at par with the provision made in respect of Frequent Flier Programme and reduce therefrom amounts recovered from the employees for valuation of F.B.T. in respect of such tickets. 2) The learned C.I.T(A) ought to have directed the Assessing Officer to value F.B.T in respect of free tickets issued to employees at Rs.NIL. The assessment of fringe benefit for impugned AY was framed by Ld. Deputy Commissioner of Income Tax-5(1), Mumbai [AO] on 22/03/2013 u/s 115WE(3) read with Section 115WG of the Income Tax Act, 1961. 2.2 Briefly stated the assessee being resident corporate assessee engaged in Airlines business was subjected to re-assessment of Fringe Benefit [FB] u/s 115WE (3) read with Section 115WG of the Income Tax Act, 1961 on 22/03/2013. The return of Fringe Benefit Tax [FBT] was filed by the assessee on 28/11/2006 declaring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee from its employees in this regard. The relevant observations of Ld. first appellate authority, in this regard, are extracted below:- 5.3. Ground Nos.4 to 6 pertains to the taxability and the valuation of Fringe Benefit Tax in respect of free and concessional Air Tickets issued to the employees of the appellant company. The A.O. has valued it on the basis of actual fair whereas the appellant has contended that the valuation of such tickets should be the cost of the tickets in the hands of the appellant s company and it should be valued as concessional tickets provided under the scheme of the frequent fliers for which regular provision is made in the account of the appellant. The appellant has vehemently relied upon the decision of the Hon ble ITAT in the case of M/s Jet Airways in A.Y.2006-07, where under almost similar circumstances the valuation of the fringe benefits of concessional tickets has been directed to be at par with the cost of such tickets to the appellant as worked out in the provisions made by the appellant in its books of accounts in respect of the frequent flier scheme. After considering the rival submissions and respectfully following the decision of Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled by the assessee (M/s. Air India Ltd.) has been perused and it has been observed that the assessee has not shown any expenditure under the head of fee and concessional tickets to the employees and their family members. However, being an airlines company the possibility of expenditure incurred under this head cannot be ignored. The reassessment provisions as contained in Section 115WG are extracted here-in-below:- 115WG : Fringe benefits escaping assessment - If the Assessing Officer has reason to believe that any fringe benefits chargeable to tax have escaped assessment for any assessment year, he may, subject to the provisions of sections 115WH, 150 and 153, assess or reassess such fringe benefits and also any other fringe benefits chargeable to tax which have escaped assessment and which come to his notice subsequently in the course of the proceedings under this section, for the assessment year concerned (hereinafter referred to as the relevant assessment year) Explanation - For the purpose of this section, the following shall also be deemed to be cases where fringe benefits chargeable to tax have escaped assessment, namely :- ( a) where no return of frin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led with additional fringe benefits of ₹ 78.83 crores on account of free / concessional tickets provided by the assessee to its employees / their family members. The Ld. CIT(A), in similar manner, has provided partial relief to the assessee. Aggrieved, the assessee as well as revenue is in cross appeal before us with identical worded grounds. However, the assessee, in its cross objections, has filed an additional ground vide letter dated 03/05/2018. The Ld. DR has opposed the same on the ground that the same is altogether a new ground and being raised by the assessee for the first time and therefore not valid. However, the same being legal ground which do not require appreciation of new facts and hence, taken on record in terms of judgment of Hon ble Apex Court rendered in NTPC Company Ltd Vs CIT [229 ITR 383]. The additional ground reads as follows:- On the facts and circumstances of the case, since the order u/s.115WG of I.T.Act 1961 was not passed within the time limit stipulated u/s 153(1B) of the I.T.Act,1961, it is prayed that the same is bad in law and may be cancelled. As evident from additional ground, the quantum assessment order has been challenged on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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