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2017 (2) TMI 1399 - HC - Income TaxDisallowance of expenses debited as cost of ESOP in profit and loss account - allowable deduction u/s 37 - Held that:- The issue stands covered in favour of the assessee and against the Revenue by the order of this court in CIT v. Lemon Tree Hotels Ltd. [2015 (11) TMI 404 - DELHI HIGH COURT]. The court had affirmed the order of the Income-tax Appellate Tribunal deciding the issue in favour of the assessee in the said case where the addition made by the Assessing Officer by way of dis allowance of the expenses debited as cost of ESOP in profit and loss account was deleted by the Income-tax Appellate Tribunal. In the present case, the Income-tax Appellate Tribunal has by the impugned order restored the matter to the file of the Assessing Officer for re-adjudication. The impugned order of the Income-tax Appellate Tribunal is consistent with what has been held by this court in CIT v. Lemon Tree Hotels (supra) wherein held Tribunal held that it was not a case of contingent liability depending on the various factors on which the assessee had no control. The expenditure in this behalf was an ascertained liability, thus the expenditure incurred being on lines of the SEBI guidelines, there could be no interference in the relief granted by the assessing authority for the expenditure arising on account of the employees' stock option plan. This expenditure incurred as per the SEBI guidelines and granted by the Officer could not be considered as erroneous. No substantial question of law.
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