2025 (12) TMI 961

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....Act"), dated 28.12.2023 for AY 2021-22. 2. Grounds taken by the revenue are reproduced as under: "1. Whether, on the facts and in the circumstances of the case and in law, the CIT(A) failed to appreciate that the expenditure incurred on the ESOP scheme is a capital expenditure and not a revenue expenditure. 2. Whether, on the facts and in the circumstances of the case and in law, the CIT(A) erred in holding that the ESOP expenditure is an allowable deduction under Section 37(1) of the Income Tax Act, 1961, ignoring the fundamental nature of the transaction which is a capital transaction involving the issuance of shares and an increase in the company's equity base. 3. Whether, on the facts and in the circums....

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....original return of income on 15.03.2022, reporting total income at Rs. 87,99,30,130/-. This return was revised on 31.03.2022 with revised total income at Rs. 89,19,17,420/-. Ld. AO noted that assessee has claimed expense on account of ESOP in its profit and loss account for Rs. 5,76,56,828/- out of which amount of Rs. 1,96,21,272/- was suo moto added back in the computation of income while filing the return. Thus, out of the said total amount, assessee claimed a deduction of Rs. 3,80,35,556/- for which explanations were called for. Assessee made its detailed submissions which are reproduced in the impugned assessment order. 3.1. Assessee submitted that the issue raised by the ld. AO is no longer res-integra on account of long line of jud....

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....Thus, following this consistent view in assessee's own case on identical fact pattern, he held that the disallowance made by the ld. AO is unjustified and directed to delete the same. 4. Aggrieved, revenue is in appeal before the Tribunal. Ld. Counsel for the assessee placed on record a paper book containing copies of orders of Co-ordinate Bench in assessee's own case for past several years which have been perused. On confrontation of the same to the ld. Department Representative (DR), nothing distinguishable was brought on record to controvert. It was submitted that revenue has taken up the case of Biocon Limited (supra) before the Hon'ble Supreme Court which is pending for disposal. 5. We have heard both the parties and perused the ....