2016 (12) TMI 1874 - HC - Income Tax

Court denies ESOP cost deduction, upholds ITAT decision. No substantial question of law.

The High Court upheld the decision of the Income Tax Appellate Tribunal (ITAT) to disallow expenses deducted as the cost of Employees Stock Auction Plan ... Disallowance of expenses deducted as cost of Employees Stock Auction Plan (ESOP) - Revenue contends that the assessee/Revenue fell into error inasmuch as even though took note of the decision of this Court for the previous year as relied on CIT Vs. Oswal Agro Mills Limited [2015 (11) TMI 301 - DELHI HIGH COURT] has not applied the law correctly - HELD THAT:- The judgment in Commissioner of Income Tax Vs. Havells India Limited [2012 (5) TMI 449 - DELHI HIGH COURT] was considered specifically in Oswal Agro’s case [2015 (11) TMI 301 - DELHI HIGH COURT] i.e. decided on 04.08.2015. Havells’case (supra) had taken note of the various judgments including Punjab State’s case [1996 (12) TMI 6 - SUPREME COURT]. Moreover, this Court notices that the question of law arose only for two years i.e. Assessment Years 2008-09 and 2009-10. There were previous orders which cover Assessment Year 2008-09. In the circumstances, having regard to the overall circumstances and the fact that the previous orders took note of the relevant judgments, it is held that no substantial question of law arises. Appeal dismissed. The High Court dismissed the appeal regarding the disallowance of expenses deducted as cost of Employees Stock Auction Plan (ESOP) by the Income Tax Appellate Tribunal (ITAT). The court held that no substantial question of law arises as the relevant judgments were considered in previous orders for Assessment Years 2008-09 and 2009-10.