https://www.taxtmi.com/caselaws?id=448251 The ITAT Mumbai ruled in favor of the assessee on multiple grounds. The CIT(A) exceeded jurisdiction by disallowing ESOP expenditure without the AO examining the revised return's ESOP claims. Following Biocon Ltd precedent, ESOP expenses were held as allowable revenue expenditure representing employee compensation costs. The tribunal deleted the section 14A disallowance, finding no exempt income was earned from mutual fund consolidation under section 47(xviii), making section 14A provisions inapplicable. All grounds were allowed favoring the assessee. en-us Tue, 19 Dec 2023 00:00:00 +0530 Sat, 13 Jan 2024 14:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448251 The ITAT Mumbai ruled in favor of the assessee on multiple grounds. The CIT(A) exceeded jurisdiction by disallowing ESOP expenditure without the AO examining the revised return's ESOP claims. Following Biocon Ltd precedent, ESOP expenses were held as allowable revenue expenditure representing employee compensation costs. The tribunal deleted the section 14A disallowance, finding no exempt income was earned from mutual fund consolidation under section 47(xviii), making section 14A provisions inapplicable. All grounds were allowed favoring the assessee. Case-Laws Income Tax Tue, 19 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448251