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2021 (7) TMI 87 - AT - Income TaxExpenditure incurred in respect of ESOP (Employees Stock Option Programme) - Disallowance of expenditure incurred in respect of Shares of holding company (ESOP) to its employees - HELD THAT:- In the instant case, we are of the view that the assessee stands in a better footing. The assessee has not issued its own shares at the discounted price. In fact, the employees have been given shares of the holding company at a discounted price and the assessee has borne the discount amount on behalf of its employees. Hence, in effect, it is a staff welfare programme of the assessee and hence the same is allowable as deduction u/s 37(1) of the Act - we set aside the order passed by Ld. CIT(A) on this issue in both the years under consideration and direct the A.O. to delete the disallowance. Deduction of Education Cess and higher education Cess - HELD THAT:- We notice that the claim of the assessee for deduction of payment of education Cess is held to be allowable by Hon’ble Bombay High Court in the case of Sesagoa Ltd. [2020 (3) TMI 347 - BOMBAY HIGH COURT]. The said decision has been followed by the coordinate bench in the case of Wipro Ltd.[2020 (10) TMI 605 - ITAT BANGALORE] - Thus we direct the A.O. to allow education Cess as deduction in both the years.
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