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2022 (12) TMI 790 - AT - Income TaxESOP expenditure - nature of expenditure - whether CIT(A) erred in holding that the ESOP expenditure was only notional and capital in nature, thus attracting disallowance? - HELD THAT:- As decided in assessee’s own case in [2021 (11) TMI 1119 - ITAT DELHI] expenditure incurred in connection with the ESOP is treated as revenue expenditure, we hereby allow the ground of appeal on this issue. Addition on account or interest paid on money borrowed as unsecured loan - HELD THAT:- We note that the AO has prepared a chart in which interest paid to Smt. Vasntha Surya was Rs.8,36,424/- and the rate of interest varied between 13% to 24%. Assessee’s claim was that it was in need of funds and banks did not provide necessary assistance, has been rejected by the authorities below on the ground that no such evidence is available. Comparing the interest rate with bank rates in the facts of this case is quite anomalous considering the fact that assessee has claimed that assessee has got the loan without any collateral security and rate varied from 13% to 24%. So blanket disallowance by the AO and confirmed by the ld. CIT (A) is without any basis. It is not the case that the expenditure is bogus. In these circumstances, we set aside the orders of the authorities below and decide the issue in favour of the assessee. Disallowing the expenditure incurred by the Appellant towards gift provided to foreign delegate as a part of business promotion - HELD THAT:- We find that assessee has not adduced any evidence before us also to take a contrary view than the one taken by ld. CIT (A) on above issues. As regards gold chain, we may also observed that if it was a souvenir on behalf of the assessee company, there is no reason why the bill is in the name of the Director in person. Hence, we confirm the disallowances as sustained by ld. CIT (A). Disallowing the claim for weighted deduction in respect of expenditure on scientific research u/s 35(2AB) - HELD THAT:- Upon careful consideration, we find ourselves in agreement with the submission of ld. Counsel of the assessee as above. Assessee has duly fulfilled the obligation cast upon it. It has duly obtained the required certificate from DSIR. The delay in respect of Form 3CL is not attributable to any act or omission of the assessee. Moreover the case laws referred above duly cover the issue in favour of assessee. No contrary decision has been brought to our notice. Hence, following the aforesaid precedents, we set aside the order of authorities below and decide the issue in favour of assessee.
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