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TMI Blog2023 (5) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... F valuation and the subsequent performance is not correct. CIT(A) has passed a well reasoned order and rightly relied upon the order of Cinestaan Entertainment (P) Ltd. [ 2019 (6) TMI 1367 - ITAT DELHI] . Accordingly, we do not find any infirmity in the order of the Ld. CIT(A), hence we uphold the same. Disallowance of ESOP expenses by relying on case of Biocon Ltd . [ 2013 (8) TMI 629 - ITAT BANGALORE] - CIT-A deleted addition - HELD THAT:- We find that this issue is squarely covered by the decision of Lemon Tree Hotels [ 2015 (11) TMI 404 - DELHI HIGH COURT] and New Delhi Television Ltd. [ 2016 (7) TMI 1486 - DELHI HIGH COURT] wherein it has been held that expenditure under ESOP is an allowable expense. Hence, we find that the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... websites, mobile apps and web based enterprise applications. During the year it has issued preference shares and received Rs.2,54,50,003/- as share premium. During the course of assessment proceeding the Assessing Officer asked the assessee company to submit justification as per Section 56(2)(vi) (b) of the Act for the share value along with 11UA valuation report. Further, vide questionnaire dated 15.12.2018 the assessee company was asked to show cause as to why the share premium received in excess of Face value on issue of preference shares be not added to income us 56(2)(viib) of the Act (only in case off shares issued to resident persons) as valuation report is in respect of equity shares and not preference share and to provide comparab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer and made an addition of Rs. 1,88,82,824/- representing the amount of share premium received during the year us 56(20(viib) of the Act. 4. Upon assessee s appeal, the Ld. CIT(A) deleted the addition by holding as under:- 6.7 I find from the records that the Appellant Company has been promoted by the professionals and is carrying on business in a very specific niche area. It has raised the venture capital during the year through Indian Angel Network Ltd from a range of high net-worth individuals and reputed professionals who are reputed names in their respective field. Moreover, the price at which the shares were issued was duly based on a valuation report based on the DC method prepared by Ashwani Associates, Charter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the ITAT in the case of Cinestaan Entertainment (P) Ltd. vs Income Tax Officer, [(2019) 106 taxmann.com 300 (Del.-Trib.)]. Accordingly, we do not find any infirmity in the order of the Ld. CIT(A), hence we uphold the same. Apropos the issue of ESOP Expenses 9. The Assessing Officer disallowed the claim of Rs.3,40,297/- made by the assessee company on account of ESOP expenses by relying on the Bangalore Special Bench of ITAT order dated 16.07.2013 in the case of Biocon Ltd. vs DCIT. 10. Upon assessee s appeal, the ld. CIT(A) deleted the addition by holding as under:- 7.3. I have gone through the assessment order and the submissions made on behalf of the assessee company by the AR and find that the jurisdictional Delhi Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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