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2023 (1) TMI 1263 - AT - Income TaxDisallowance of foreign exchange loss by the AO and confirmed by the DRP - HELD THAT:- As relying on case Woodward Governor India [2009 (4) TMI 4 - SUPREME COURT] we direct the Assessing officer to delete the addition of foreign exchange loss. ESOP scheme & expenditure and provisions of law on the allowability of claim - HELD THAT:- We found that in the case of CIT(LTU) VS M/S Biocon Ltd [2020 (11) TMI 779 - KARNATAKA HIGH COURT] as held deduction of discount on ESOP over the vesting period is in accordance with the accounting in the books of accounts, which has been prepared in accordance with Securities And Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999. Assessee has incurred a definite legal liability and on following the mercantile system of accounting, the discount on ESOPs has rightly been debited as expenditure in the books of accounts. We are in respectful agreement with the view taken in PVP Ventures Ltd. [2012 (7) TMI 696 - MADRAS HIGH COURT] And Lemon Tree Hotels Ltd. [2015 (11) TMI 404 - DELHI HIGH COURT] Decided in favour of assessee.
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