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2018 (7) TMI 941 - AT - Income TaxFringe benefits escaping assessment - Fringe benefit tax [FBT] liability - assessee provided free / concessional tickets to its employees / their family member - re-assessment of Fringe Benefit [FB] u/s 115WE (3) read with Section 115WG - Held that:- Since the assessee has originally been assessed, its case is covered by Clause (c) of the explanation, since the information as received by Ld. AO, suggested possible escapement of fringe benefit. At this stage, only a prima facie opinion suggesting underassessment was required to be formed by Ld. AO, which has apparently been formed. It is settled law that deeming fiction has to be construed strictly. The Ld. AO, subsequent to completion of assessment, came across certain information which suggested possible under-assessment of fringe benefit in the hands of the assessee. This being the case, we are of the opinion that the Ld. AO was clinched with valid jurisdiction to reassess the fringe benefit of the assessee. This ground of assessee’s appeal stand dismissed. 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 [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 framework and therefore, the same being time barred, could not be sustained in the eyes of law. Resultantly, we quash the same. Accordingly, the additional ground raised by assessee stands allowed.
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