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2020 (5) TMI 86 - AT - Income TaxTP Adjustment - Comparable selection - HELD THAT:- Assessee-company is engaged in the activities in India, which includes design and sales agent support services NXP’s design competence centre in Bangalore offers user solutions for vibrant medis technologies and focuses on automotive, identification and software businesses, thus companies functionally dissimilar with that of assessee need to be deselected from final list. Disallowing the stock compensation expense - HELD THAT:- There was an amendment to section 17(2)(iiia) with effect from 01.04.2000, however, the same was deleted by the Finance Act, 2000 with effect from 01.04.2001. Being so, the judgment of the Hon’ble Supreme Court in the case of Infosys Technologies Limited [2006 (12) TMI 62 - HIGH COURT, KARNATAKA] is squarely applicable to the facts of the case. Accordingly, we hold that the element of shares to employees under ESOP could not be treated as perquisite as there was no benefit and value of benefit, if any, was unascertainable at the time when the options were exercised. Accordingly, we allow this ground raised by the assessee.
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