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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 ..... . CIT(A) has erred in directing the Assessing Officer to value the fringe benefits in respect of free / concessional tickets to the employees at par with the provisions made in respect of frequent flier programme and thereafter the amounts recovered from the employees, if any should be reduced as has been directed by the Hon'ble ITAT in the case of M/s Jet Airways in A.Y.2006-07. The grounds raised in assessee's cross objections reads as under:- 1) The learned Dy. Commissioner of Income Tax (D.C.I.T) erred in reopening Fringe Benefit Tax (Assessment) for Asst. Year 2006-07 without recording satisfaction that Fringe Benefits chargeable to Tax has escaped assessment. 2) The learned D.C.I.T erred in reopening Fringe Benefit Tax (F.B.T) assessment completed u/s.115WE(3) of the I.T.Act,1961 vide order dated 30-12-2008 3) The appellant respectfully submits that the provisions of Sec.115WG of I.T.Act,1961 for reopening the F.B.T. assessment cannot be resorted to for reviewing a FBT assessment completed u/s.115WE(3) of the I.T.Act,1961. 4) On the above facts and circumstances of the law the impugned reassessment Order dated 22-03-2013 passed in contravention of law be declared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would even otherwise remain vacant whether the employee travels or not and therefore, the value thereof was Nil for FBT purposes. However, not convinced, Ld. AO relying upon CBDT circular No. 8/2005, worked out additional fringe benefit to the extent of Rs. 62.38 crores which was arrived at after multiplying the number of free tickets issued with average revenue per passenger generated by the airline during the year. 3. Aggrieved, the assessee contested the same before Ld. CIT(A) on legal grounds as well as on merits with partial success vide impugned order dated 12/12/2014 wherein Ld. first appellate authority upheld the initiation of reassessment proceedings. A partial relief was granted to the assessee with respect to valuation of the tickets in terms of judgment of this Tribunal rendered in Jet Airways (India) Limited Vs DCIT [153 TTJ 624] and the Ld. AO was 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. The relevant observations of Ld. first appellate authority, in this regard, are extracted below:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the AY under question is AY 2006-07, wherein the original assessment has been completed u/s 115WE(3) on 30/12/2008. The reassessment proceedings have been initiated vide issuance of notice u/s 115WH dated 06/11/2012 and the reassessment proceedings have been completed on 22/03/2013. The reasons to initiating reassessment proceedings, as extracted in the quantum assessment order, read as follows:- "In this case, subsequent to completion of assessment, information has been received from DCIT-5(2), Mumbai in the case of Jet Airways India Ltd. for A.Y.2006- 07, 2007-08 and 2008-09, that the cost of free and concessional tickets provided by the airline company to its employees and their family members was earlier not offered to tax for the relevant A.Yrs. as Fringe benefit under the provisions of section 115WB(1)(b) of the I.T.Act. Therefore, the same has been brought to tax under the said section after reopening the case. On the basis of this information received, the details of the FBT return for A.Y.2006- 07 filed 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 concessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld. AO was clinched with valid jurisdiction to reassess the fringe benefit of the assessee. This ground of assessee's appeal stand dismissed. 6. Coming to the merits of the case, we 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 [153 TTJ 624] . Since a view has already been taken by the Tribunal on identical factual matrix, taking the same view, 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. 7. In nutshell, the cross appeals stands dismissed. Cross Appeals for AY 2007-08 8. The cross appeals for AY 2007-08 are on similar factual matrix wherein the assessee has been reassessed for fringe benefits on 20/02/2014 wherein it has been saddled with additional fringe benefits of Rs. 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 partia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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