https://www.taxtmi.com/caselaws?id=326848 The Tribunal allowed the assessee's appeal, reversing the disallowance under Section 14A and ESOP expenses. It held that disallowance under Section 14A requires a nexus between tax-free income and expenditure, which was not established. The Tribunal also ruled that ESOP expenses were allowable as business expenditure. Regarding the buyback of shares, the Tribunal determined it was not a colorable device to avoid dividend distribution tax, emphasizing that the profit from buyback should be taxed as capital gains. The Tribunal dismissed the AO's appeal, deciding in favor of the assessee on all issues. en-us Fri, 22 Apr 2016 00:00:00 +0530 Tue, 26 Apr 2016 10:29:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=326848 The Tribunal allowed the assessee's appeal, reversing the disallowance under Section 14A and ESOP expenses. It held that disallowance under Section 14A requires a nexus between tax-free income and expenditure, which was not established. The Tribunal also ruled that ESOP expenses were allowable as business expenditure. Regarding the buyback of shares, the Tribunal determined it was not a colorable device to avoid dividend distribution tax, emphasizing that the profit from buyback should be taxed as capital gains. The Tribunal dismissed the AO's appeal, deciding in favor of the assessee on all issues. Case-Laws Income Tax Fri, 22 Apr 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=326848