ITAT upholds FBT but dismissed penalty

The Delhi ITAT upheld the levy of Fringe Benefit Tax on various employee-related expenditures incurred by Jet Lite, holding that the impugned expenses fell within the ambit of the FBT provisions under Chapter XII-H of the Income-tax Act. 

However, the Tribunal simultaneously upheld the deletion of penalties under Section 271(1)(d), observing that the assessee had made full disclosure of all relevant facts and had advanced a bona fide legal claim regarding non-taxability. 

Relying on the Supreme Court’s decision in Reliance Petroproducts, the Tribunal reiterated that mere rejection of a legal claim does not amount to furnishing inaccurate particulars.