9911796707
TMI Blog2023 (5) TMI 1139X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal germinates from the order passed u/s 154 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") by the Assessing Officer (AO). 3. The facts in brief relevant to the present appeal are: The assessee filed its original return of income for the impugned assessment year on 30.09.2009 declaring taxable income of Rs.5,09,100/-. Thereafter, the assessee filed revised return of income on 31.09.2011 declaring taxable income of Rs.8,44,31,495/-. The final assessment order was passed for AY 2009-10 on 21.01.2014 u/s 144C(3) r.w.s. 143(3) of the Act determining total income of Rs.749,96,15,830/-. Thereafter, the AO issued notice u/s 154 of the Act on 02.11.2015 indicating a mistake that in Schedule 2 to the Balance Sheet, Reserve an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t by the AO, prayed for reversing the findings of CIT(A). 6. Per contra, Shri P. J. Pardiwala appearing on behalf of the assessee vehemently defended the impugned order. The ld. Counsel for the assessee submits that the issue relevant to disallowance of deduction of employee share based payment is debatable. The Special Bench of the Tribunal in the case of Biocon Limited vs. DCIT, 144 ITD 21 (Bangalore Trib.) (SB) has held that expenditure on account of ESOP is revenue expenditure. The aforesaid decision by Special Bench was upheld by the Hon'ble Karnataka High Court in the case of CIT vs. Biocon Limited 430 ITR 151. The ld. Counsel asserted that it is a settled legal position that wherever the issue is debatable, it is not a mistake appar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee, the cost accrued over the period of rendition of services by the employee was deductible in the year of its accrual that is over the vesting period. The CIT(A) after considering submissions of the assessee placed reliance on the decisions of Special Bench in the case of Biocon Limited (supra), the decision of Madras High Court in the case of CIT vs. PVP Ventures Limited, 211 Taxmann 554 and the decision of Hon'ble Delhi High Court in the case of PCIT vs. NDTV in ITA No.107 of 2017 decided on 27.02.2019 before the CIT(A) and held that such cost cannot be considered as contingent in nature. The assessee before the CIT(A) brought on record that for AY 2011-12, the AO has allowed the claim of such expenses. The CIT(A) in these ..... X X X X Extracts X X X X X X X X Extracts X X X X
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