TMI Blog2023 (4) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... one by the learned CIT(A) in formulating the opinion that various contentions raised by the assessee to the effect that ESOP expenditure is a revenue expenditure allowable in the hands of the employer are not acceptable is not reflected on the face of the order. No reasons are forthcoming for invoking the provisions under section 17(2)(vi)(c) of the Act against the repeated contentions of the assessee that for the reasons stated in their written submissions, such an expenditure has to be allowed in the hands of the employer. Reasons are the life blood for any judicial/quasi-judicial order without which it would be difficult for the appellate authority to sustain or overrule the findings reached by the authorities. As rightly pointed out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer disallowed the Employee Stock Option Plan (ESOP) cost claimed by the assessee as expenditure and also allowed the TDS credit for a lesser amount than was available. 4. Assessee preferred appeal before the learned CIT(A) and submitted that under the ESOP scheme formulated by Edelweiss Financial Services Limited (EFSL) of which the assessee is a subsidiary, the assessee claimed deduction of the difference between the market price of EFSL shares as on the date of exercise by the employees and the grant price of such shares as expenditure under section 37(1) of the Act. Assessee further referred to the detailed note on this aspect submitted on 23/12/2019 and 28/12/2019 along with the case law in support of its contention that incurren ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lacing reliance on the decision of the Bangalore Bench of the Tribunal in the case of Biocon Limited (2013) 25 ITR(T) 602 Bangalore Trib.) (SB) once it is established that a particular payment or benefit in kind is in the nature of remuneration to the employees, the same is fully deductible in the hands of the employer. 7. Assessee further submitted before the learned CIT(A) that the decision in M/s. Biocon Limited (supra) was confirmed by the Hon ble High Court holding that the difference between the market value of shares and the value at which the employees have granted option to acquire the shares of the employer is a deductible expenditure and not a contingent or notional expenditure. According to the assessee, under the earlier p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e form in part of salary. According to the Revenue, such a finding is contrary to the decision in the case of B. Durga Prasad in ITA No. 451/Viz/2016, dated 24/10/2018. Revenue further submitted that the learned CIT(A) failed to give an opportunity to the learned Assessing Officer under section 46A of the Income Tax Rules, 1962 ( the Rules ). 10. Main plank of the argument of the learned AR is that the order of the learned CIT(A) does not address any of the contentions raised by the assessee in their written submissions filed before the learned Assessing Officer and also the learned CIT(A) nor to the material submitted by the assessee. Learned AR submits that the learned CIT(A) simply extracted the grounds of appeal, statement of facts, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asons are forthcoming for invoking the provisions under section 17(2)(vi)(c) of the Act against the repeated contentions of the assessee that for the reasons stated in their written submissions, such an expenditure has to be allowed in the hands of the employer. Reasons are the life blood for any judicial/quasi-judicial order without which it would be difficult for the appellate authority to sustain or overrule the findings reached by the authorities. 13. In this case, as rightly pointed out by the learned AR, the reasons are conspicuous by their absence and, therefore, we find it difficult to know the mind of the first appellate authority. 14. In these circumstances, we deem it just and proper to set aside the impugned order and rest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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