Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 880 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - suomoto disallowance by assessee - HELD THAT:- As following the decision of the Hon'ble Supreme Court in the case of Maxopp Investment Ltd.[2018 (3) TMI 805 - SUPREME COURT] and the decisions of the Hon'ble Jurisdictional High Court referred to above , we direct the Assessing Officer to delete the disallowance made u/s. 14A r.w. Rule 8D of I.T.Rules for the assessment years 2012-13 and 2013-14 by accepting the suomoto disallowance of expenditure considered by the assessee for earning exempt income for the purpose of computing the disallowance u/s. 14A r.w. Rule 8D of I.T.Rules. Additional ground No.1 filed by the assessee is allowed. Deduction in respect of Education Cess, Secondary and Higher Education on Income-tax - HELD THAT:- This issue is squarely covered by the decision of the Hon'ble Bombay High Court in the case of Sesa Goa Ltd. [2020 (3) TMI 347 - BOMBAY HIGH COURT] where in held that Education Cess and Higher and Secondary Education Cess are liable for deduction in computing income chargeable under head of “profits and gains of business or profession”. Respectfully following the said decision of the Hon'ble Jurisdictional High Court allowing the additional ground No.2 of grounds of appeal, we direct the Assessing Officer to compute the income of the assessee after allowing deduction in respect of Education Cess, Secondary and Higher Education Cess on Income-tax. Expenditure incurred on Employee Stock Option Plan (ESOP) - HELD THAT:- We observe that the issue is decided in favour of the assessee by the Special Bench of the Tribunal, Bangalore Bench in the case of Biocon Ltd [2013 (8) TMI 629 - ITAT BANGALORE] and affirmed by the Hon'ble Karnataka High Court in the case of CIT v. Biocon Limted [2020 (11) TMI 779 - KARNATAKA HIGH COURT]. Thus, respectfully following the said decision we direct the Assessing Officer to allow the expenditure on Employee Stock Option Plan. Additional ground No.3 of the assessee is allowed.
|