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2022 (12) TMI 1418 - AT - Income Tax“ESOP” (Employee Stock Options) deduction - not an allowable revenue expenditure u/s.37? - HELD THAT:- As in assessee’s case itself [2022 (9) TMI 239 - ITAT PUNE] involving the preceding twin assessment years 2010-11 and 2011-12, has already rejected the Revenue’s arguments as relying on CIT Vs. Biocon Ltd [2020 (11) TMI 779 - KARNATAKA HIGH COURT] - Thus, we see no infirmity in the order passed in allowing the claim of ESOP expenses under section 37(1) of the Act. The ground raised by the Revenue is rejected. Disallowance of interest income on Non Performing Assets (NPAs) on accrual basis - HELD THAT:- It emerges during the course of hearing that the same is also no more res integra in light of hon’ble jurisdictional high court’s recent common order involving assessment years 2009-10 to 2011-12 in assessee’s case(s) itself [2019 (4) TMI 378 - BOMBAY HIGH COURT] declining the Revenue’s ground held that interest on NPAs cannot be taxed on accrual basis. It was noted that NBFC would be governed by the directions issued by the Reserve Bank of India and RBI directives provided that under certain circumstances, a loan or advance would be treated as NPA. The Court on the real income theory held that such interest would not be taxable. We notice that the decision of the Delhi High Court in case of Vasisth Chay Vyapar Ltd [2010 (11) TMI 88 - DELHI HIGH COURT] was carried in the appeal by the Revenue before the Supreme Court. The Supreme Court in the judgment reported in [2018 (3) TMI 56 - SUPREME COURT] approved the decision of the High Court and dismissed the appeal. Decided against revenue.
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