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TMI Blog2018 (9) TMI 1028X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Revenue before it. This is called for because, the CIT(A) did not deal with the said issue while passing the order dated 30.01.2008. Though the CIT(A) states that he finds considerable force in the claim of the assessee, there is no reason to substantiate as to how the CIT(A) came to the conclusion that the stand of the assessee that the income relating to stock option should be charged as long-term capital gains merits acceptance. We find that there were no reasons assigned by the CIT(A) to come to the conclusion that it was a stock option scheme and chargeable as capital gains - We allow these appeals, set aside the impugned order passed by the Tribunal and restore the appeals to the file of the Tribunal to decide the case afre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and circumstances of the case, the Appellate Tribunal was correct in dismissing the revenue's appeal against deletion of penalty contrary to its decision in I.T.A.No.2013/Mds/08 dated 22.05.2009? 4.Record of the proceedings shows that the respondent has been served but, has not entered appearance and his name is printed in the cause list. 5.We have heard Mr.T.Ravikumar, learned Senior Standing Counsel for the Revenue. 6.The issue, which fell for consideration before the Tribunal, was whether the Commissioner of Income-tax (Appeals) (CIT(A)) was justified in holding that the exercise of the stock option plan by the assessee should be assessed as long-term capital gain instead of treating the same as perquisite. 7.We have p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of proviso to Section 17(2) of the Income Tax Act, 1961. 9.Further, the Tribunal ought to have noted that the specific case of the Revenue was that the assessee has not acquired any shares but, the Company in USA has sold the shares outside India and remitted the difference between the Sales Price and the Option Price, which alone is paid to the employees of the company as a special allowance and finds space as such in the Form XVI issued to the employee. Thus, the Revenue s case was that this amount should be treated as perquisite to the assessee in addition to his salary. 10.Furthermore, the Revenue s specific case was that the entire transaction took place abroad and it took place on one particular date. The stock was not transfe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there were no reasons assigned by the CIT(A) to come to the conclusion that it was a stock option scheme and chargeable as capital gains. In such circumstances, the onus is on the Tribunal to take a decision on merits and if the Tribunal was of the view that on facts the decision of the Bangalore Tribunal in Giridhar Krishna.M (supra) was applicable, it was required to be specifically stated so in the impugned order. However, nowhere in the impugned order there is such finding recorded by the Tribunal. Therefore, these are fit cases, where the matter should be remanded to the Tribunal to take a decision on the merits of the matter and then proceed to apply the correct legal principle. The appeals, filed against the orders deleting pen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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