TaxTMI 
TaxTMI 
2021 (8) TMI 1143
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....16 passed by the ITO, Ward-2, Gandhinagar & DCIT, Gandhinagar Circle, Gandhinagar under Section 143(3) of the Income Tax Act, 1961 for A.Ys. 2012-13 and 2013-14 respectively. ITA No. 381/Ahd/2019 (A.Y. 2012-13):- 2. Ground No. 1:- The appellant has suo-moto, on a conservative basis worked out certain expenses (including interest) towards Section 14A disallowance amounting to Rs. 2,42,61,665/- in the Tax Computation. According to the assessee all the expenditures which can even conservatively disallowed under Section 14A has already been done, therefore, no further disallowance can be made under Section 14A. However, the contention made by the assessee was not accepted by the Ld. AO and he ultimately applied Rule 8D and disallowed furt....
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....ade by the appellant. 7. It appears that while allowing the appeal in favour of the assessee the First Appellate Authority observed as follows:- "5.2 I have considered the facts of the case, assessment order and submission made by the appellant. The AO made the impugned disallowance by holding that the claim of the appellant was not correct as per the provisions of Rule 8D and he accordingly computed the disallowance at Rs. 33,10,539/- u/s 14A rw Rule 8D. I find from the submissions made by the appellant that the Hon'ble Gujarat High Court in the appellant's own case on the same issue vide its order dated 07/1/2016 has held that in absence of recording any satisfaction by the AO, Rule 8D cannot be invoked and has decided....
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....ng the addition of Rs. 1,22,12,831/- made by the Assessing Officer under Section 14A of the Income Tax Act read with Rule 8D of the Income Tax Rules is concerned, we have heard Mr. Sudhir Mehta, learned advocate appearing for the appellant and Mr. S.N.Soparkar, learned Senior Advocate appearing on behalf of the assessee. We have perused the impugned judgment and order passed by the learned ITAT deleting the addition of Rs. 1,22,12,831/ made by Assessing Officer under Section 14A of the Income Tax Act read with Rule 8D of the Income Tax Rules, 1962. While deleting the addition of the aforesaid made by the Assessing Officer, the learned Tribunal has heavily relied upon the decision of the Division Bench of this Court in the case of Principal ....
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....he appellant's own case of the Hon'ble Gujarat High Court being the jurisdictional high court would be squarely applicable to the for the year under consideration as well. Moreover, the appellant has already disallowed proportionate administrative expenses incurred to earn the exempt income. Accordingly, in view of the Hon'ble High Court's order in appellant's own case for AY 2009-10, the disallowance made by the AO under Section 14A of the Act of Rs. 1,51,46,813/- is deleted. Grounds nos. 2 to 7 of appeal are allowed." 8. Thus, it appears though it is incumbent upon the Ld. AO to record a satisfaction as to why the disallowance offered by the assessee was not sufficient which is sine qua non before proceeding to appl....
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....e called "Employee Stock Option Plan, 2010" for eligible employees of the company who were granted stock options based on certain criteria. Being a listed company the appellant in accordance with the SEBI guidelines, 1999 charged the difference between the market price as on the date of grant of option and exercised price of total number of options as "ESOP Expenditure" in its financial statements based on vesting pattern and has claimed the same as deduction under Section 37 of the Act. 11. At the time of hearing of the instant appeal the Ld. Senior Counsel appearing for the assessee submitted before us that the issue of deductibility of ESOP expenditure has been decided extensively by the Special Bench of ITAT in Biocon Limited vs. DCI....