COMMISSIONER OF INCOME TAX Vs. AIR FRANCE

JUDGEMENT

(1.) This appeal under Section 260A of the Income Tax Act, 1961 ('Act') by the Revenue against the impugned order dated 9th September 2002 passed by the Income Tax Appellate Tribunal ('ITAT') in TDS No. 2/Del/95 for the financial year 1992-93.

(2.) By an order dated 12th October 2004 the Court admitted the appeal and framed the following question for consideration:

(3.) The brief facts are that during the course of the assessment proceedings, the Assessing Officer ('AO') observed that the employees of the Assessee have been given free/concessional tickets. The AO treated the free/concessional tickets as perquisite and valued it at Rs. 15,48,300. The corresponding short deduction of tax at source was computed as Rs. 6,93,638. It was pointed out by the Assessee that the tickets were in fact received by its employees from the other airlines and, therefore, could not be considered as a benefit derived by the employee from the Assessee. The AO did not agree and added the above sum of TDS to the Assessee's income.