https://www.taxtmi.com/caselaws?id=200558 The Tribunal upheld the CIT(Appeals) decision to proportionately disallow interest expenditure under section 37(1) of the Income Tax Act for Assessment Year 2009-10. It ruled that the borrowings for Employee Stock Option Plan shares, benefiting employees through a Trust holding shares of group companies, constituted an allowable expenditure. The disallowance would apply if shares were allotted to employees of other group companies, with the disallowed amount allowed in those companies' hands. The Revenue's appeal was dismissed for lack of merit. en-us Tue, 15 Oct 2013 00:00:00 +0530 Wed, 04 Apr 2018 15:21:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=200558 The Tribunal upheld the CIT(Appeals) decision to proportionately disallow interest expenditure under section 37(1) of the Income Tax Act for Assessment Year 2009-10. It ruled that the borrowings for Employee Stock Option Plan shares, benefiting employees through a Trust holding shares of group companies, constituted an allowable expenditure. The disallowance would apply if shares were allotted to employees of other group companies, with the disallowed amount allowed in those companies' hands. The Revenue's appeal was dismissed for lack of merit. Case-Laws Income Tax Tue, 15 Oct 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=200558