TMI Blog2023 (11) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the Learned CIT-A on this issue and dismiss ground of the appeal of the Revenue. Disallowance of ESOP expenditure - allowable revenue expenditure u/s 37 or not? - CIT(A) deleted the addition - HELD THAT:- Issue is squarely covered in favour of the assessee by the decision of Biocon Ltd. [ 2020 (11) TMI 779 - KARNATAKA HIGH COURT] wherein it has been held that the above deduction is allowable to the assessee u/s 37(1) - CIT-A has further referred to the decision of PVP Ventures Ltd [ 2012 (7) TMI 696 - MADRAS HIGH COURT] holding similar view. Employees Stock Option Scheme expenditure incurred by the assessee is reimbursed to the holding company with respect to the employees employed by the assessee. This is equivalent t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax or not considering the fact that TDS amount was not claimed by the assessee in revised return filed. 3. Whether in facts and circumstances of the case and in law, the Ld.CIT(A) erred by directing to allow ESOP expenses when same are contingent in nature as liabilities towards payment was not crystallized. 4. The appellant prays that the order of the CIT (A) on the above grounds be set aside and that of the Assessing Officer be restored. 03. The brief facts of the case shows that the assessee, an infrastructure finance company, filed its return of income on 30/11/2014 declaring a total income of Rs. 398,84,40,420/-. This return was revised on 13/12/2014 at Rs. 412,48,94,160/-. The return was picked up for scrutiny by issuing not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,05,48,105/- has not been granted. 08. The Learned CIT-A, with respect to ESOP expenditure, held that the issue is squarely covered in favour of the assessee by the decision of the Hon'ble Karnataka High Court in CIT vs. Biocon Ltd., 276 Taxman 1, wherein the Court held that ESOP expenditure is revenue expenditure and not contingent expenditure. The Learned CIT-A also followed the decision of the Hon'ble Madras High Court in CIT vs. PVP Ventures Ltd., 211 Taxman 554. Several other decisions of coordinate bench were cited and discussed by him. Accordingly, the above disallowance was deleted. 09. The assessee was also aggrieved about the short granting of tax deducted at source of Rs. 37,99,088,415/-. The assessee submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in its income in the impugned assessment year. Accordingly, we confirm the order of the Learned CIT-A on this issue and dismiss ground Nos.1 and 2 of the appeal of the Revenue. 14. With respect to ground No.2 on account of disallowance of ESOP expenditure, the issue is squarely covered in favour of the assessee by the decision of the Hon'ble Karnataka High Court in CIT vs. Biocon Ltd. (supra), wherein it has been held that the above deduction is allowable to the assessee under section 37(1) of the Act. The Learned CIT-A has further referred to the decision of the Hon'ble Madras High Court in the case of CIT vs. PVP Ventures Ltd. (supra), holding similar view. The Learned CIT-A has also relied upon several decisions of the Co-ordi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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