2023 (5) TMI 1139

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.... appeal filed by the Department. 2. This appeal germinates from the order passed u/s 154 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") by the Assessing Officer (AO). 3. The facts in brief relevant to the present appeal are: The assessee filed its original return of income for the impugned assessment year on 30.09.2009 declaring taxable income of Rs.5,09,100/-. Thereafter, the assessee filed revised return of income on 31.09.2011 declaring taxable income of Rs.8,44,31,495/-. The final assessment order was passed for AY 2009-10 on 21.01.2014 u/s 144C(3) r.w.s. 143(3) of the Act determining total income of Rs.749,96,15,830/-. Thereafter, the AO issued notice u/s 154 of the Act on 02.11.2015 indicating a mistake that ....

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....entative (DR) supporting the order passed u/s 154 of the Act by the AO, prayed for reversing the findings of CIT(A). 6. Per contra, Shri P. J. Pardiwala appearing on behalf of the assessee vehemently defended the impugned order. The ld. Counsel for the assessee submits that the issue relevant to disallowance of deduction of employee share based payment is debatable. The Special Bench of the Tribunal in the case of Biocon Limited vs. DCIT, 144 ITD 21 (Bangalore Trib.) (SB) has held that expenditure on account of ESOP is revenue expenditure. The aforesaid decision by Special Bench was upheld by the Hon'ble Karnataka High Court in the case of CIT vs. Biocon Limited 430 ITR 151. The ld. Counsel asserted that it is a settled legal position th....