ESOP expenditure allowed as FMV difference; long-term capital gain issue sent back for collector rate determination; deferred income additions disallo...
Appeal allowed; impugned order quashed as regulator failed to prove nexus or manipulative scheme; sale genuine - s.12A(a)-(c), Regs 3(a)-(d),4(1),4(2)...
Appellant's ring-back tone service held OIDAR, taxable domestically for 01.07.2012-31.07.2016; liability confirmed, penalties vacated, remanded for re...
ITAT allowed the appeal and set aside the Principal Commissioner's revisional order under s.263. The Tribunal held that s.263 is confined to correcting patent errors causing prejudice to the Revenue and does not permit reappreciation of evidence or substitution of the AO's view; Explanation 2 applies only where enquiry or verification is absent. The Principal Commissioner's premise that the taxpayer recovered ESOP costs was a factual misconception: ledger, financials and TDS reconciliation demonstrated only statutory TDS pass-through, not reimbursement, negating any prejudice to the Revenue. On merits the ESOP discount was held deductible under s.37(1) as employee remuneration incurred wholly and exclusively for business, making the AO's acceptance a tenable view.
ITAT allowed the appeal and set aside the Principal Commissioner's revisional order under s.263. The Tribunal held that s.263 is confined to correcting patent errors causing prejudice to the Revenue and does not permit reappreciation of evidence or substitution of the AO's view; Explanation 2 applies only where enquiry or verification is absent. The Principal Commissioner's premise that the taxpayer recovered ESOP costs was a factual misconception: ledger, financials and TDS reconciliation demonstrated only statutory TDS pass-through, not reimbursement, negating any prejudice to the Revenue. On merits the ESOP discount was held deductible under s.37(1) as employee remuneration incurred wholly and exclusively for business, making the AO's acceptance a tenable view.
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