TMI Blog2019 (8) TMI 1771X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by Special Bench of this Tribunal in Biocon [ 2013 (8) TMI 629 - ITAT BANGALORE ] in favour of assessee AR submitted that shares were allotted to employees during year under consideration, and therefore in our considered opinion, ratio of decision of Special Bench in Biocon (supra) squarely covers the issue - No infirmity in the view taken by Ld. CIT (A) and the same is upheld. - Decided against revenue. - ITA No.937(Bang)/2019 - - - Dated:- 2-8-2019 - SHRI B.R.BASKARAN ACCOUNTANT MEMBER AND SMT.BEENA PILLAI, JUDICAL MEMBER Revenue by : Dr.P.V.Pradeep Kumar, Addl.CIT Appellant by : Shri K. Seshadri, CA ORDER PER BEENA PILLAI, JUDICIAL MEMBER : Present appeal has been filed by revenue against order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court in case of CIT vs Lemon Tree Hotels Ltd in ITA No. 107/2015 and CIT vs PVP ventures Ltd reported in (2012) 23 Taxmann.com 286 respectively. 3. Ld.AR submitted that decision of Delhi Tribunal in case of ACIT vs Ranbaxy Laboratories in ITA No. 2613 and 3871 has been considered by this is Special Bench in Biocon (supra). 4. We have perused submissions advanced by both sides in light of records placed before us. 4.1 It is observed that Ld. AO disallowed ESOP expenditure by stating that there is no expenditure incurred and the expenditure crystallises only on the date on which the employee exercises option and any expenses claimed during vesting period is contingent in nature and that the expenditure on ESOP is a capital expendi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This is also clear from the board resolutions (PB 80-81,82 83) and returns of allotment filed with the ROC(PB70 to74 ,75 to 79). 6.5 It is seen that during the year, the assessee had allotted equity shares and the same were issued and debited to their books of accounts. 6.6 The Hon ble ITAT in the case of Spray Engineering Devices Ltd and SSI Ltd. Have held that the expenditure on sweat equity shares is allowable u/s 37(1) of the IT Act. It is also seen that necessary tax is also deducted from the hands of the employees treating this sum as perquisite. 6.7 Respectfully following the decisions of Special Bench in the ce of Biocon Ltd., Vs DCIT, Delhi High Court in CIT Vs Lemon Tree Hotels Ltd., and the Madras High Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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