2010 (8) TMI 524

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....it Tax (FBT) assessment completed under section 115WE(3) of the Income-tax Act, 1961. He has held that the assessment order passed is erroneous and prejudicial to the interest of Revenue. 2. The FBT assessment in this case was completed vide assessment order dated 19-12-2009. The assessee had returned the taxable value of fringe benefits at Rs. 20,47,93,727. The return has been accepted by the assessing authority. 3. On examination of the records of the case, the Commissioner of Income-tax found that the assessee has not paid FBT on the rent paid for parking slots. As part of the rent paid to the landlord, the assessee has specified the rent pertaining to the parking slots allotted to the assessee company. These slots are used for par....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s issue was considered by the Hon'ble Court in the case of International Airports Authority Employees Union v. International Airports Authority of India AIR 2001 SC 276. The contention of the applicants before the Court was that parking areas formed integral part of the airport and the persons employed for sweeping the parking area should be considered as working in the airport and therefore they were entitled for regularization in their service. In this regard the Court held as follows : "The Sweepers with whom we are concerned in these interlocutory applications work in the car parks in the Santacruz and Sahar Airports at Mumbai and they are six in number. It is difficult to conceive of the airport being functional without a car park a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at rent includes all payments agreed by the tenant to be paid to his landlord for the use and occupation, not only of the building and its appurtenances, but also of furnishings, electrical installations and other amenities agreed between the parties to be provided by and at the cost of the landlord. 8. In the present case, even though the rent pertaining to the car parking slots is mentioned distinctly and separately in the lease deed, the assessee is paying the amount as part of the overall rent paid to the landlord. The judicial pronouncements mentioned above have clearly upheld the contention of the assessee that the essential facilities attached to a rented building have to be treated as part of the building itself and therefore the....