https://www.taxtmi.com/caselaws?id=65261 Employee Stock Option Scheme benefits were not taxable perquisites before the insertion of clause (iiia) in section 17(2) of the Income-tax Act, 1961, effective from 1 April 2000. The Tribunal treated shares allotted under the scheme as becoming perquisites only from assessment year 2001-02 onwards, so no taxable benefit arose to employees for the relevant years. As no tax was deductible at source on those benefits for 1998-99 and 1999-2000, penalty under section 271C for failure to deduct tax at source was not leviable. The cancellation of penalties was upheld and the Department's appeals were rejected. en-us Fri, 23 Dec 2005 00:00:00 +0530 Mon, 14 Feb 2011 15:22:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=65261 Employee Stock Option Scheme benefits were not taxable perquisites before the insertion of clause (iiia) in section 17(2) of the Income-tax Act, 1961, effective from 1 April 2000. The Tribunal treated shares allotted under the scheme as becoming perquisites only from assessment year 2001-02 onwards, so no taxable benefit arose to employees for the relevant years. As no tax was deductible at source on those benefits for 1998-99 and 1999-2000, penalty under section 271C for failure to deduct tax at source was not leviable. The cancellation of penalties was upheld and the Department's appeals were rejected. Case-Laws Income Tax Fri, 23 Dec 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=65261