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2022 (7) TMI 589 - AT - Income TaxNature of expenditure - cost of Employees/Options Plans (ESOP) pertaining to the prior period - revenue or capital expenditure - HELD THAT:- As issue raised in this case by the assessee as to allowability of ESOP cost being in the nature of Revenue expenditure has already been decided by the Special Bench of Tribunal in case of Biocon Ltd. [2013 (8) TMI 629 - ITAT BANGALORE] - The Co-ordinate Bench of Tribunal also in case of Goldman Sachs (I) Securities Pvt. Ltd. (2015 (12) TMI 966 - ITAT MUMBAI] decided the issue in favour of the assessee by holding that discount on issue of ESOP is allowable as deduction under the head “Profits & Gains of Business or Profession”. So the expenditure claimed by the assessee on account of ESOP under section 37(1) of the Act is allowable. So, the impugned order passed by ld. CIT(A) directing the AO to delete the disallowance. Appeal of assessee allowed.
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