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The Tax PublishersITA No. 180/2021
2021 TaxPub(DT) 5922 (Karn-HC)INCOME TAX ACT, 1961
Section 37(1)
Appeal filed by Revenue challenging the decision of Special Bench of the Tribunal in the case of CIT v. M/s. Biocon Ltd. (2020) 430 ITR 151 (Karn) : 2020 TaxPub(DT) 4924 (Karn-HC) was dismissed by this court, answering the substantial questions of law against the Revenue and in favour of assessee. Thus, claim made by assessee made towards Employees Stock Option Plan (ESOP) expenditure was Revenue expenses
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Business expenditure - ESOP expenses - Allowability -
Assessee was engaged in the business of M Bio information, molecular biology and bio-technology. AO disallowed the claim made towards Employees Stock Option Plan (ESOP) expenditure under section 37(1). Held: It was significant to note that appeal filed by the Revenue challenging the decision of the Special Bench of the Tribunal in the case of CIT v. M/s. Biocon Ltd. (2020) 430 ITR 151 (Karn) : 2020 TaxPub(DT) 4924 (Karn-HC) was dismissed by this court, answering the substantial questions of law against the Revenue and in favour of assessee. Thus, claim made by assessee made towards Employees Stock Option Plan (ESOP) expenditure was Revenue expenses.
Followed:CIT v. M/s. Biocon Ltd. (2020) 430 ITR 151 (Karn) : 2020 TaxPub(DT) 4924 (Karn-HC), CIT v. M/s. PVP Ventures Ltd. (2012) 23 taxman.com 286 (Mad) : 2014 TaxPub(DT) 1924 (Mad-HC), Jt. CIT v. M/s. Molecular Connections (P) Ltd. [ITA No. 937(Bang)/2019, dt. 2-8-2019] and M/s. Biocon Ltd. & Ors.v. The Dy. CIT & Ors. (2013) 35 taxman.com 335 (Bang) : 2013 TaxPub(DT) 2046 (Bang-Trib)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2013-14
IN THE KARNATAKA HIGH COURT
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