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2017 (1) TMI 783 - AT - Income TaxStock Appreciation right expenses - revenue or capital expenditure - Held that:- Hon’ble Madras High Court has also an occasion to consider the allowability of the ESOP expenditure [2012 (7) TMI 696 - MADRAS HIGH COURT] wherein Hon’ble high court has held that the claim of the ESOP is an ascertained liability for deduction on is allowable. Similarly Hon’ble Delhi High Court in case of CIT versus Lemon tree hotels Ltd [2015 (11) TMI 404 - DELHI HIGH COURT] has held that the expenses debited as cost of employee stock option plan in the profit and loss account is allowable. Thus we respectfully hold that stock Appreciation right expenses claimed by the appellant is not in a capital expenses, but revenue expenditure and ascertained liability therefore it is allowable expenses. In the result the disallowance made by the Ld. and assessing officer and enhancement made to that taxable income of the appellant by Ld. 1st appellate authority is held to be erroneous and therefore set aside - Decided in favour of assessee
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