2026 (2) TMI 200

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....Ms. Asstha Sharma, Adv For the Department : Shri Om Prakash, Sr. DR PER NAVEEN CHANDRA, AM :- This appeal by the assessee is directed against the order of the NFAC, Delhi dated 03.01.2025 pertaining to A.Y 2018-19. 2. The assessee has raised 6 grounds of appeal. Vide Ground Nos. 1 to 4 the assessee has challenged the assumption of jurisdiction by the Assessing Officer on the ground tha....

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..... Brief facts of the issue are that during the course of assessment proceedings, the Assessing Officer noticed that the assessee company has debited an amount of Rs. 93 lakhs in the Profit and Loss Account towards cost of share awards granted under ESOP to the employees. The Assessing Officer denied the claim of ESOP expenses u/s 37 of the Act, claim and added the same the same to the income of th....

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....ubmissions and have perused the relevant material on record. We find that the hon'ble Delhi High Court has held the issue of ESOP against the Revenue as follows: "2. The question sought to be projected by the Revenue is whether the ITAT erred in deleting the addition of Rs. 1,28,19,169/- made by the Assessing Officer ('AO') by way of disallowance of the expenses debited as cost of Employe....

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....hat the decision of the ld. CIT(A) to uphold the order of the Assessing Officer stems from the fact that the Revenue has filed an appeal before the Hon'ble Supreme Court against the decision in the case of Lemon Tree Hotels [supra] by Hon'ble Delhi High Court which has been admitted and therefore, the issue of ESOP has become subjudice. We are of the considered opinion that just because th....