The Income Tax Appellate Tribunal (ITAT) Delhi Bench directs readjudication in regarding the disallowance of the deduction of discount on the issue of shares under Employee Stock Option Plan (ESOP).
The assessee, Yes Bank Ltd return was revised and declared total income of Rs 22,75,02,02,660/- Thereafter assessee case was selected for scrutiny. Finally, the AO passed an assessment order by disallowing the deduction of discount on issue of shares under the ESOP scheme.
Aggrieved by the order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) {CIT(A)}, who allowed the appeal. The CIT(A) also allowed the claim of deduction of discount on issue of shares Under ESOP scheme. Thereafter the matter came before the tribunal.
The tribunal said that it is not appropriate here to allow the claim of the assessee for the simple reason that deduction is required to be verified with respect to its quantum by the lower authorities.
Therefore, the tribunal set aside the allowability of discount on issue of shares Under the employee stock option plan back to the file of the assessing officer to examine the claim of the assessee and allow it in accordance with the law.
After reviewing the facts and submissions of the both parties the two-member bench of Om Prakash Kant (Accountant Member) and Kavitha Rajagopal (Judicial Member) directed readjudication in respect of disallowance of the deduction of discount on the issue of shares under Employee Stock Option Plan.
Yogesh Thar, the counsel appeared for the assessee and Kishore Dhule, Counsel appeared for Revenue.
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