2011 (2) TMI 1521 - AT - Income Tax

Summary

Issues: Disallowance of expenditure related to ESOPS treated as perquisite to employees u/s 37(1) of the I.T. Act.

Summary:
The Appellate Tribunal ITAT Hyderabad heard two appeals by the assessee against orders of the CIT(A)-V, Hyderabad for the assessment years 2005-06 and 2006-07. The issue in both years was the disallowance of expenditure on ESOPS treated as perquisite to employees. The Assessing Officer questioned the eligibility of the expenditure u/s 37(1) of the I.T. Act, despite the assessee citing a decision from ITAT Chennai Bench. The Assessing Officer disallowed the expenditure, which was upheld by the CIT(A). The Tribunal noted that a previous decision against the assessee covered the current issue. The assessee accepted this, and the Tribunal confirmed the lower authorities' orders, leading to the dismissal of both appeals.

In conclusion, the Tribunal dismissed both appeals of the assessee, upholding the disallowance of expenditure related to ESOPS treated as perquisite to employees u/s 37(1) of the I.T. Act.