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2023 (5) TMI 1139 - ITAT MUMBAIRectification u/s 154 - Debatable issue - disallowance of deduction of employee share based payment reserve by treating it as contingent liability - whether the AO could disallow deduction of employee share based payment in proceedings u/s 154? - CIT(A) held that since the issue is debatable, therefore, could not have been disallowed in proceedings u/s 154 - As per the contention of the assessee, the cost accrued over the period of rendition of services by the employee was deductible in the year of its accrual that is over the vesting period - HELD THAT:- CIT(A) after considering submissions of the assessee placed reliance on the decisions of Biocon Limited [2013 (8) TMI 629 - ITAT BANGALORE], PVP Ventures Limited [2012 (7) TMI 696 - MADRAS HIGH COURT] and the decision of NDTV [2017 (2) TMI 1399 - DELHI HIGH COURT] before the CIT(A) and held that such cost cannot be considered as contingent in nature Assessee before the CIT(A) brought on record that for AY 2011-12, the AO has allowed the claim of such expenses. The CIT(A) in these facts held that disallowance of employee share based payment was not permissible u/s 154 of the Act and deleted the addition. We find no infirmity in the impugned order, hence, the same is upheld and appeal of the Revenue is dismissed being devoid of any merit. Appeal of revenue dismissed.
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