9911796707
TMI Blog2023 (1) TMI 1067X X X X Extracts X X X X X X X X Extracts X X X X ..... ld to Rs.72,27,660 as compared to the amount of Rs.2,13,73,864 claimed by the assessee. 3. The brief facts of the case are as follows: The assessee is an individual, who was employed with M/s.Wipro Limited during the relevant assessment year. For the assessment year 2019-2020, the return of income was filed in the capacity of "non-resident" on 22.07.2019 declaring total income of Rs.3,16,670. The total income comprised of (a) income from salary of Rs.5,803, (b) income from house property Rs.3,77,352, (c) loss under the head capital gains of Rs.85,70,552 and (d) income from other sources of Rs.91,262. The assessment was selected for scrutiny and notice dated 31.03.2021 was issued u/s 143(2) of the I.T.Act. During the course of assessment p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uisite value for the shares allotted and accordingly treated as taxable salary in accordance with section 17(2)(vi) of the I.T.Act. The total amount of taxable perquisite value in respect of 73,235 shares allotted amounted to Rs.72,27,660. The assessee also submitted that the calculation of capital gains in respect of the said transaction in respect to the aforesaid show cause notice. In the said calculation, the market price on the date of exercise for calculating perquisite as appearing in the allotment certificate was adopted as "cost of acquisition", which according to the assessee, was as per section 49(2AA) of the I.T.Act. Therefore, the total cost of acquisition claimed amounted to Rs.2,13,73,564. 5. The Assessing Officer passed dra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Stock Option scheme shall be the fair market value which has been computed as per rule 3(8) and taken into account for the purposes of section 17(2)(vi); (iii) Considering the `perquisite value' computed under section 17(2)(vi) even though section 49(2AA) specifically refers to the `fair market value' taken into account for the purposes of section 17(2)(vi) (iv) Not appreciating that, the assessee is entitled to claim the entire fair market value as computed as per rule 3(8) which is taken into account for the purposes of section 17(2)(vi), as cost of acquisition of shares sold; (v) Not appreciating that, the expression "taken into account" used in section 49(2AA) does not imply that it should be restricted to the amount ultimate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee. 2.4.5 The assessee has objected to the proposed addition. He has submitted as under: (i) The cost of acquisition of the shares were determined in accordance with section 49(2AA) r.w.s. 17(2)(vi); (ii) The perquisites were offered partly to tax in India and partly in USA, the details of which are culled out as under: No.of shares India Offered in A.Y. USA USD Offered in FTR 33635 46,60,881 2018-19 51,737,074 75079 2018 30000 25,18,500 2018-19 62,56,500 92267 2017c 9600 48,288 2018-19 27,52,320 40226 2018 73235 72,27,669 1,41,45,894 207572 In India 72,27,669 In USA 1,41,45,894 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m USA for the relevant A.Y's and copy of the returns filed in the USA for the relevant A.Y's, duly evidencing the taxes paid with reference to TRC and other requirements. However, the assessee failed to submit the TRC even after affording sufficient time. In view of the same since the assessee has failed to furnish the details required, the cost of acquisition amounting ot Rs.1,41,45,894/- is hereby disallowed." 8. Aggrieved by the final assessment order, the assessee has filed the present appeal before the Tribunal. The assessee has filed a paper book comprising of 211 pages inter alia enclosing therein notices issued by the A.O., the replies filed by the assessee, the details of tax paid in USA etc. The learned AR reiterated the submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... termining the cost of acquisition u/s 49(2AA) of the I.T.Act. Hence, we affirm the directions of the DRP. In the interest of justice and equity, we restore the issue to the files of the A.O. The A.O. is directed to examine the TRC and the same if it is found to be in order, the cost of acquisition shall be taken at Rs.2,13,73,563 as claimed by the assessee in his return of income. With these observations, we restore the matter to the files of the A.O. The A.O. is directed to afford a reasonable opportunity of hearing to the assessee and decide the issue in accordance with law. It is ordered accordingly. 11. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 10th day of October, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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