Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 1401 - ITAT DELHIDisallowance of Employee stock option scheme Compensation - allowable revenue expenditure - Held that:- ESOP has been treated as Revenue expenditure. The Revenue did not bring any contrary decision against the Special Bench decision in case of Biocon Ltd. (2013 (8) TMI 629 - ITAT BANGALORE). It is not the case of Revenue that the decision of Special Bench of ITAT has been either set aside or reversed by Hon’ble Karnataka High Court. Keeping all we find that the CIT(A) has rightly decided the issue in favour of the assessee with certain directions to the AO. - Decided against assessee. Addition u/s 14A - relevant factor in determining the deduction - dominant object for which the investment into the shares made - Held that:- Hon’ble Supreme Court in the case of Maxopp Investment Ltd. v. CIT (2018 (3) TMI 805 - SUPREME COURT OF INDIA) has categorically held that the dominant object for which the investment into the shares is made by the assessee may not be relevant. It is also held that the investment made in order to gain control of the investee company would not be relevant factor in determining the issue u/s. 14A. We, however, observe from the order of the Assessing Officer that the assessee in his computation of disallowance u/s. 14A filed before the AO has not even included such investments, from which he has earned the exempted income. The matter back to the file of the Assessing Officer to recomputed the disallowance u/s. 14A read with Rule 8D, after considering the decision of Hon’ble Apex Court in the case of Maxopp Investment (supra). The assessee is also directed to furnish complete details of investments as required by the assessing officer for correct computation of disallowance u/s. 14A. Accordingly, this ground is allowed for statistical purposes.
|