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TMI Blog2018 (3) TMI 1529X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee had to follow SEBI direction and by following such direction, the assessee claimed the ascertained amount as liability for deduction - the expenditure on issue of shares under the Employees Stock Option could be allowed as staff welfare expenditure - Decided in favour of assessee. - ITA 311/2018 - - - Dated:- 19-3-2018 - MR. S. RAVINDRA BHAT AND MR. A. K. CHAWLA JJ. Appellant T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In PVP Ventures Ltd. (supra), Madras High Court discussed the relevant issues in the following manner : 7. On the issue of Staff Welfare expenditure, the Commissioner pointed out that the assessee had debited a sum of ₹ 66.82 lakhs under the head of Staff Welfare expenditure. The said sum was incurred by the assessee in respect of Employees Staff Option Plan and Employees Staff Pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the market value of the shares did not warrant any allowance as expenditure. Ultimately, the Commissioner of Income Tax passed an order directing the Assessing Officer to revise the assessment. Thus, holding that the revision proceedings were validly initiated, the income received on account of exchange fluctuation was held as a revenue receipt and be taxed as such and the Staff Welfare expenditu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad been submitted by the Revenue. Pointing out to the Employees Stock Option Plan, the Tribunal in its order stated that it was a benefit conferred on the employee. So far as the company is concerned, once the option was given and exercised by the employee, the liability in this behalf got ascertained. This was recognised by SEBI and the entire Employees Stock Option Plan was governed by guideline ..... X X X X Extracts X X X X X X X X Extracts X X X X
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