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TMI Blog2020 (5) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... ly under the fact that the same is recoverable from its parent company. We also notice from the assessment order that the parent company has not reimbursed the amount only on account of change of policy of the parent company. The internal decision taken by two related concerns cannot be a ground in allowing the claim of write off. Accordingly, we are of the view that the Ld. CIT(A) has rightly confirmed the disallowance. Addition made of on the basis of Annual Information Report (AIR) - difference between the amount paid by the assessee towards credit card bills and that reported by American Express Bank in the AIR information - A.R. submitted that the assessee has now collated details of payments made to American Express Bank on accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its holding company. 3. The first issue relates to advances written off. The assessee claimed a sum of ₹ 86.65 lakhs as deduction under the head Advances written off . The assessee explained to the AO that these advances represent the amount paid by the assessee to its employees in lieu of Employees Stock Option Plan (ESOP), which was floated by Tektronix Inc. USA for all the employees of group companies of Tektronix, but later on abandoned. It was further stated that the ESOP scheme was withdrawn by Tektronix Inc. USA due to various internal business reasons. The assessee has treated the amount paid to its employees as advances give to its parent company . Later it was found that the above said amount will not be paid by the par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial expediency. Since the amount paid by the assessee to its employees has been taxed in the hands of its employees, the same should be allowed as deduction in the hands of the assessee. 5. We heard Ld. D.R. and perused the record. We notice that the assessee was directed to pay cash to the employees in lieu of ESOP entitlements by its parent company Tektronix Inc., USA. The assessee has obtained a confirmation letter in this regard from its parent company and the same is placed at page 195 of the paper book. The Ld. A.R. submitted that the said confirmation letter was obtained after the completion of the assessment proceedings and the same was furnished before Ld. CIT(A). 6. We notice from the confirmation letter that the assessee w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yees for incurring expenses on behalf of the company. As per AIR information received by the A.O., the assessee has paid credit card bills to M/s. American Express Bank Corporation to the tune of ₹ 3.59 crores. Since the assessee could furnish details to the extent of ₹ 1.06 crores only, the A.O. added the difference of ₹ 2.52 crores in the hands of the assessee. Subsequently, it was noticed that the amount reported by M/s. American Express Bank Corporation was not correct and accordingly, a supplementary AIR was filed by the above said bank. According to the supplementary AIR, the assessee herein has paid a sum of ₹ 1.18 crores only. As stated earlier, the assessee had furnished details to the tune of ₹ 1.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... press bank has given details of credit cards payments received by it as under:- Tektronix India P Ltd (AABCT1733D) 1,18,87,570 Tektronix Engg. Development India Private Limited - 1,71,33,268 2,90,20,838 The Ld A.R submitted that both the above said companies have been merged and hence the combined total should be taken into account. The assessee has furnished the details of credit card payments made by it in pages 147 to 155 of the paper book for an amount of ₹ 1,06,40,130/- and in pages 158 to 174 of the paper book for an amount of ₹ 1,78,15,132/-. The first set of details relates to M/s Tektronix ..... X X X X Extracts X X X X X X X X Extracts X X X X
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