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TMI Blog2015 (12) TMI 1026X X X X Extracts X X X X X X X X Extracts X X X X ..... he appeal. The assessee filed an application for condonation of delay. After hearing both sides, we find that there was sufficient cause for not filing the appeal before this Tribunal within the prescribed time. Accordingly, the delay of 35 days in filing the appeal is condoned and the appeal is admitted. 2. Shri K.R. Vasudevan, ld. Counsel for the assessee submitted that the only issue arises for consideration is taxation of Employees Stock Option Plan under fringe benefit tax. 3. According to the ld. Counsel, the Employees Stock Option Plan is subjected to taxation. However, for the year under consideration, the Employees Stock Option Plan cannot be subjected to taxation. Referring to sec. 115WB(1)(a) of the Act, the ld. Counsel submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble on record. It is not in dispute that the Employees Stock Option is liable for fringe benefit tax. The Parliament, by Finance Act, 2007 introduced sub-clause (d) in sec. 115WB(1) of the Act. By way of Explanation, the Parliament clarified that Employees Stock Option includes securities. Therefore, Employees Stock Option Plan would fall u/s 115WB(1)(d) of the Act. The CIT(A) found that Sec. 115WB(1)(d) introduced by Finance Act, 2007 was applicable for the assessment year 2008-09. However, the Employees Stock Option Plan is a benefit/privilege conferred on the employees directly by the employer, therefore, before assessment year 2008-09 it would fall u/s 115WB(1)(a) of the Act. Hence, the Employees Stock Option Plan, according to the ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall apply in cases where the allotment or transfer is on or after 1st day of April, 2007." 7. In view of the Circular, the provisions of new clause (d) to sec. 115WB(1) shall apply in cases where the allotment or transfer is made on or after 1st day of April 2007. The CBDT Circular further clarified that with a view to bring grant of stock options by employers to employees within the purview of fringe benefit tax, sub-section (d) was introduced in sec. 115WB(1) of the Act by Finance Act, 2007. Therefore, the intention of the Parliament is to bring stock option within the purview of fringe benefit tax for the first time by Finance Act, 2007. Therefore, the observation of the CIT(A) that the Employees Stock Option Plan is a privilege/benef ..... X X X X Extracts X X X X X X X X Extracts X X X X
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