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2023 (5) TMI 908 - ITAT DELHIAddition of share premium receipt u/s 56(2)(viib) - valuation report submitted by the assessee company was not substantiated by the assessee company - CIT-A deleted the addition - HELD THAT:- Assessee has used recognized discounted cash flow method. This is duly recognized method as per section 56(2)(viib) of the Act read with rule 11UA of the Income Tax Rules. AO has rejected this method by comparing the subsequent performance with the projections by claiming that this was not correct. CIT(A) noted that the AO’s rejection of the DCA value on the basis of variation between the projections used for arriving at the DCF valuation and the subsequent performance is not correct. CIT(A) has passed a well reasoned order and rightly relied upon the order of Cinestaan Entertainment (P) Ltd. [2019 (6) TMI 1367 - ITAT DELHI]. Accordingly, we do not find any infirmity in the order of the Ld. CIT(A), hence we uphold the same. Disallowance of ESOP expenses by relying on case of Biocon Ltd. [2013 (8) TMI 629 - ITAT BANGALORE] - CIT-A deleted addition - HELD THAT:- We find that this issue is squarely covered by the decision of Lemon Tree Hotels [2015 (11) TMI 404 - DELHI HIGH COURT] and New Delhi Television Ltd. [2016 (7) TMI 1486 - DELHI HIGH COURT] wherein it has been held that expenditure under ESOP is an allowable expense. Hence, we find that the Ld. CIT(A) has passed a correct order and we do not need to interference on our part. Accordingly, this appeal by the Revenue is dismissed.
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