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2019 (8) TMI 1771 - AT - Income TaxNature of expenditure - Allowance of ESOP expenditure - Whether it is a revenue expenditure actually incurred by the company, as per the provisions of the IT Act? - AO disallowed ESOP expenditure by stating that there is no expenditure incurred and the expenditure crystallises only on the date on which the employee exercises option and any expenses claimed during vesting period is contingent in nature and that the expenditure on ESOP is a capital expenditure - CIT-A allowed the claim of assessee - HELD THAT:- CIT (A) very categorically analysed that the objections raised by Ld. AO in present case has been addressed by Special Bench of this Tribunal in Biocon [2013 (8) TMI 629 - ITAT BANGALORE] in favour of assessee AR submitted that shares were allotted to employees during year under consideration, and therefore in our considered opinion, ratio of decision of Special Bench in Biocon (supra) squarely covers the issue - No infirmity in the view taken by Ld. CIT (A) and the same is upheld. - Decided against revenue.
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