9911796707
TMI Blog2023 (6) TMI 1117X X X X Extracts X X X X X X X X Extracts X X X X ..... egard to the above said expenditure, it has been claiming deduction in that method in the return of income also. As per the decision rendered in the case of Taparia Tools Ltd [ 2015 (3) TMI 853 - SUPREME COURT] the same would not preclude the assessee from claiming entire expenditure in the current year itself. CIT(A) was correct in law in deleting this disallowance and accordingly, we uphold the decision rendered by CIT(A) on this issue. Disallowance of ESOP expenses - HELD THAT:- As the assessee is actually incurring expenses in purchasing shares of M/s Deutsche Bank AG. This is purchased as per the employee welfare scheme as per the agreement entered with the concerned employee. The deduction is claimed when the right is vested upon the employee. It is held in the case of Biocon Ltd [ 2013 (8) TMI 629 - ITAT BANGALORE] that deduction can be claimed in the year of vesting. It can be noticed that it is a staff welfare expenditure incurred by the assessee and further, it is stated that the assessee has deducted TDS also thereon. No impediment in allowing this expenditure as deduction. Accordingly, we uphold the decision rendered by Ld CIT(A) on this issue. - C.O. No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (10,42,82,184) --------------------- Balance unamortized amount 18,05,27,066 ============== 4. The AO took the view that the assessee has been following a particular method for accounting brokerage expenses in the books of account and has been claiming deduction of the same for income tax purposes also, as per the above said method. Hence he held that the assessee could not have claimed this deduction in the revised return of income filed u/s 139(5) of the Act, since, as per sec.139(5) of the Act, a revised return of income can be filed only if the assessee discovers any omission or any wrong statement. He held that the assessee has not shown that the original return of income suffers from any omission or wrong statement. Accordingly, the AO held that it is an afterthought of the assessee to claim unamortized brokerage expenses as deduction and it is claimed as a result of discontinuation of business. Accordingly, the AO disallowed claim for deduction of Rs.18.05 crores, referred above. 5. The Ld CIT(A), however, held that the income was revised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove said case also, the assessee therein treated the upfront discounted interest as deferred revenue expense in the books of accounts and claimed entire expenditure as deduction in the return of income. The Hon ble Supreme Court allowed the claim of the assessee. In the instant case, there is no dispute that the upfront brokerage expenses were incurred during the year under consideration and it was revenue expenditure. Hence, the assessee could claim entire expenditure as deduction in the current year itself. Since the assessee was following a particular method of accounting in the books of accounts with regard to the above said expenditure, it has been claiming deduction in that method in the return of income also. However, as per the decision rendered by Hon ble Supreme Court in the case of Taparia Tools Ltd (supra), the same would not preclude the assessee from claiming entire expenditure in the current year itself. Accordingly, we are of the view that the Ld CIT(A) was correct in law in deleting this disallowance and accordingly, we uphold the decision rendered by Ld CIT(A) on this issue. 9. The next issue contested by the revenue relates to the disallowance of ESOP expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,81,607 2 Global Share Purchase Plan (GSPP) 1,16,564 3 Retention-share-based, equity settled 1,62,141 4 Stock Retention 13,88,061 Employee cost 19,48,373 6) The GSPP is the employee participation plan available to all employees of the appellants. Under REA, certain employees are awarded shares of DB as part of the annual variable Compensation/retention award (bonus). This scheme works as a deferred compensation and is offered only to certain key senior employees. The grant value (conversion of cash in OB Shares) is determined by dividing the Euro equivalent of the Award Value by the average Closing Price of DB Share on the Frankfurt Stock (Xetra) for the last ten trading days of the month, prior to the month in which the Award is made. REA expressed in DB Shares vest in the employees over tranches, generally 1/3* in three vesting dates falling in each subsequent year. 7) At the time of grant of stock awards, or DB Equity Plan, 10-day averag ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
