TMI Blog2020 (1) TMI 1668X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the claim of the assessee as following the decision in assessee s own case by his predecessor [ 2015 (8) TMI 319 - ITAT DELHI ], [ 2016 (6) TMI 1481 - ITAT DELHI] and [ 2019 (1) TMI 1401 - ITAT DELHI ] and following the decision of the honourable mother High Court in case of PVP ventures Ltd [ 2012 (7) TMI 696 - MADRAS HIGH COURT ] which held that such a liability is an ascertained liabilities and the issue is squarely covered by the decision of the coordinate bench in case of Biocon Ltd. [ 2013 (8) TMI 629 - ITAT BANGALORE ] Decided against revenue. Disallowance u/s 14A - as per CIT(A) as assessee has computed the disallowance in revised return only taking those investments which had earned exempt income during the year. He found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the business of providing online recruitment, matrimonial and real estate classifieds services in India. 4. It filed its return of income on 29/9/2012 declaring income of ₹ 1579187820/ as per the normal computation. It filed a revised return on 31/3/2014 declaring an income of Rs. 1572900160/-. The assessment under section 143 (3) of the Income Tax Act [ The Act] was passed on 10/3/2015 wherein the income of the assessee was assessed at Rs. 1594165910/-. The learned assessing officer made an addition of ₹ 1497084/ in respect of discount offered to employees on allotment of the employees stock option plan [ ESOP] and also disallowance under section 14A of the act of ₹ 12665812/ against the already disallowed expendi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... officer disallowed the above expenditure holding that above expenditure is not a revenue expenditure, it is not an actual expenditure incurred by the assessee company, Sebi guidelines are not the prerogative for determining the eligibility or otherwise often item for income tax purposes, the shares were the capital of the assessee company and loss to the capital can be considered as a capital loss and not revenue expenditure, provisions of section 145 of the income tax act is mandatory in the case of this transaction no accounting standards have been issued, the expenditure is not related to the previous year and the decision of the coordinate bench in case of Biocon Ltd has not been accepted by the Department and appeal is pending before t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year 2011-12 has considered identical issue in case of the assessee and allowed the claim. Therefore there is no reason to deviate from the same. Thus respectfully following the decision of the coordinate bench for past years in case of the assessee itself, we confirmed the order of the learned CIT(A) in deleting the above disallowance on account of employee stock option scheme. Thus, ground number one of the appeal is dismissed. 10. Second ground of appeal relates to disallowance under section 14 A of the income tax act deleted by the learned CIT (A) to the extent of Rs. 5609080/ . From the record it is gathered that based on the investment made by the assessee in the shares and mutual fund at the beginning of the year and at the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tative relied upon the order of the assessing officer and The learned authorised representative relied upon the order of the learned CIT(A). 13. We have carefully considered the rival contention and perused the orders of the lower authorities. On careful consideration of the order of the learned CIT(A), it is noted that he has held that only those investments on which dividend income is received during the year should be considered for the purpose of working out average investment for computation of disallowance under rule 8D in accordance with section 14 A of the act. The above view has been upheld by the honourable Delhi High Court in case of ACB India Ltd versus a CIT 374 ITR 108 (Delhi) (2015). In view of this we do not find any infi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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