2017 (4) TMI 1380

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....has raised the following grounds: 2.1 The Ld. Commissioner of Income Tax (Appeals) erred in directing the Assessing Officer to delete the disallowance of Rs. 77,52,000/- claimed by the assessee as expenses incurred for issue of shares under ESOP. 2.2 The Ld. Commissioner of Income Tax (Appeals) erred in not appreciating the fact that the Employees Stock Compensation Cost is nothing but the differential cost at which it was allotted to its employees than the prevailing market price. 2.3 The Ld. Commissioner of Income Tax (Appeals) failed to appreciate the fact that the assessee has neither incurred any expenditure nor any liability to pay for any expenditure, but, merely granted stock option and the assessee does n....

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.... opinion that the Book entries in the Accounts based on the recommendations of the SEBI cannot be considered and relied on the Apex court decision on the applicability of provisions of NPA and RBI guidelines and treated the notional loss is in the nature of capital expenditure and cannot be allowed to be set off against the business profits and disallowed of Rs; 77,52,000/- and passed order u/s. 143(3) r.w.s. 147 of the Act dated 28.02.2014. 4. Aggrieved by the order, assessee has filed an appeal with the CIT(A). The Ld. CIT(A) considered the grounds on the disputed issue and further, the assessee has claimed an expenditure incurred on issue of shares under ESOS. The Ld. CIT(A) discussed Authorised Representative submissions at Para 6 to....

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....ures Limited 101 DTR 0161 (Mds) and the Hon'ble High Court of Delhi CIT Vs. Lemon Tree Hotels Ltd., (2015) TIOL 2636 HC Del IT dated 18.08.2016. We find the Jurisdictional High Court considered the facts and provisions and allowed the claim as held at Para 29 as under: " As rightly pointed out by the Tribunal, the assessee had to follow SEBI direction and by following such direction, the assessee claimed the ascertained amount as liability for deduction. There exists no error to disturb the order of the Tribunal and in turn the Assessing Authority." 7. We find, the Revenue has filed letter dated 08.06.2016 in respect of claim in the earlier year by the assessee on issue of shares by ESOP and the decision of the Jurisdictiona....