TMI Blog2017 (4) TMI 1380X X X X Extracts X X X X X X X X Extracts X X X X ..... We follow the Jurisdictional High Court decision which is binding on the states of Tamilnadu and Puducherry and mere filing of SLP before the Apex Court, the Tribunal cannot take a different view and follow the judicial precedence. Hence, we are not inclined to interfere with the order of the CIT(A) who dealt on facts and Hon'ble High Court decision and allowed the appeal and Accordingly we upheld the CIT(A) order and dismiss the grounds of appeal of the Revenue. - I.T.A. No. 857/Mds/2016 - - - Dated:- 26-4-2017 - SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI. G. PAVAN KUMAR, JUDICIAL MEMBER For The Department : Shri. Supriyo Pal, JCIT For The Respondent : Shri. R. Vijayaraghavan, Advocate ORDER PER G. PA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubsequently, the Assessing Officer found that the company has issued company shares to its employees under Employees Stock Option Scheme (ESOS) at discounted rate of 15% from the prevailing market price. Therefore, the Assessing Officer is of the opinion that the assessee has not submitted the details and claimed the discount between price offered to Employees and market value of shares ₹ 77,52,000/- under the Employee Stock Compensation Cost (ESCC The Assessing Officer is of the opinion that the ESCC is a notional loss and not real loss and is in the nature of capital expenditure and issued notice u/s. 148 of the Act. In compliance to the notice, the assessee filed letter dated 05.04.2013 to treat the earlier Return filed as in respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal. Before us, the Ld. DR argued that the CIT(A) erred in directing the deletion of addition claimed by the assessee as expenditure incurred for shares issued under ESOS and further the Ld. CIT(A) has not appreciated the facts that the differential cost between the allotment made to the employees and prevailing market price cannot be considered as expenditure and prayed for dismissing the appeal. Contra, the Ld. AR relied on the orders of the CIT(A) and the assessee s own case and supported with judicial decisions. 6. We heard the rival submissions perused the material on record and judicial decision. The sole crux of the issue raised by the Ld. DR that the assessee has claimed ESOP expenditure which is in the nature of notional los ..... X X X X Extracts X X X X X X X X Extracts X X X X
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