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2019 (5) TMI 751 - HC - Income TaxTaxability of employees stock option plan - perquisite chargeable to tax - employer - employee relationship - assessing officer held that the gains on the sale of shares constituted a perquisite chargeable to tax and alternatively to treat the same as short term capital gains without any exemption u/s 54 - HELD THAT:- It is seen from the impugned order of the tribunal that the tribunal has recorded a finding of fact that there was no employer employee relationship between the respondent and the company whose shares were offered to the respondent for purchase. Therefore, the first question of law, which proceeds as though there was employer employee relationship, has no legs to stand in the light of the factual finding. Deduction u/s 54 EA - sale of shares allegedly, converted into Employees Stock Option Plan and paid long term capital gains at 10% - HELD THAT:- The second question of law should fail as a consequence of the factual finding recorded in para 16 of the judgment of the tribunal. The tribunal has recorded a finding in para 16 that stock options were granted by a company by name WLC, which is holding a 40% stake in M/s.Parke-Davis. Therefore, the tribunal was right in holding that proceeds on sale of shares are assessable as long-term capital gains and assessee is entitled all the reliefs u/s 54 as claimed by the assessee
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