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TMI Blog2013 (1) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... Member: The assessee has filed this appeal being aggrieved by the order dated 31-7-2012 of CIT (A)-V, Hyderabad passed in ITA No.289/DC 16(2)/CIT (A)-V/09-10 pertaining to the assessment year 2007-08. 2. The only issue arising out of the grounds raised by the assessee is relating to disallowance of expenditure claimed for an amount of ₹ 3,90,000/- towards allotment of equity shares to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter considering the explanation of the assessee disallowed the expenditure claimed by holding it to be contingent and notional in nature. 4. The assessee challenged the disallowance by filing an appeal before the CIT (A). The CIT (A), however, sustained the disallowance by holding that the expenditure claimed is notional. 5. At the outset, the learned AR fairly submitted that for the earlier ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave heard rival submissions and perused the materials on record. The only issue to be decided in the present appeal is whether the allotment of shares under ESOP being an ascertained liability, as claimed by the assessee, is an allowable expenditure u/s 37(1) or is not an eligible expenditure being notional and in the nature of contingent liability as held by the department. We find from record th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n by the learned AR is found to be factually distinguishable as in that case the decision was rendered in the context of validity of the proceeding u/s 263 of the Act. That apart the ratio laid down in the decision of Hon'ble Supreme Court in Emico KCP Limited V/s. CIT (242 ITR 659) was also not considered by the Hon'ble Madras High Court. The decision of Income-tax Appellate Tribunal, Che ..... X X X X Extracts X X X X X X X X Extracts X X X X
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