disallowed the
claim for deduction towards Employee Stock Option Plan (ESOP) of
Rs. 2,10,56,905/- and the claim for deduction of provision ... facts
set out by the Ld.AO relating to ESOP are as under:
"3.1. Employee Stock Option Plan (ESOP): The assessee company provides
ESOPs
ground that the expenses incurred under the Employees Stock Option Plan ("ESOP") are
notional and incurred to increase the capital base and therefore ... such taxing principle in
relation to the allowability or otherwise of the ESOP expenditure, the accounting principle
will guide the taxation or allowability
discount on shares
allotted by the assessee to its employees under the ESOP scheme out
of its share capital and claimed as an expenditure ... disallowing the expenditure claimed by the assessee under
ESOP, for the reason that the A.O in the garb of the reassessment
proceedings was having
concept
of accounting.
Additions on account of Employee Stock Option Plan
('ESOP') expenses ... account of
payments made by the Appellant for ESOPs granted to its
7 ITA No.1379/M/2021
M/s. Red Hat India Private Limited
Idea Cellular Ltd, Mumbai vs Dcit 3(2), Mumbai on 12 October, 2022
IN THE
employee's
stock option schemes. The issue of deductibility of ESOP expenditure has been
decided extensively by the special bench of ITAT in Biocon ... arguments put forth by the ld. AR is that
discount under ESOP is nothing but employees cost incurred by the
assessee for which deduction
respect of issue of shares under its Employees Stock Option Plan (ESOP) and consequently whether assessee, is liable for payment of interest under Section ... information technology industry. It has formulated an Employee Stock Option Plan (ESOP). A trust was set up by the Infosys Technologies Ltd. The trust
disallowance of expenditure incurred by the assessee
on Employees State Option Plan (ESOP). For this Revenue has raised
the following ground ... erred in directing
the AO to allow the expenditure incurred on ESOP
after verification, in accordance with the principle
laid down
himself fully.
c. the AO has reopened the assessment for disallowance of ESOP
expenditure merely after having a ―re-look‖ at the Notes ... assessment.
d. the AO had allowed the deduction on account of ESOP in the original
assessment proceedings, without any dispute.
e. In order to reopen
viii).
GROUND NO.III - ESOP Disallowance of Rs.23,36,86,000/-
3
ITA No. 6 8 1/ Mu m/ 2 0 16
Kotak Mahindra ... account of Employee
Stock Option Plan (ESOP) discount as charged to P&L account as per SEBI
Guidelines.
2. He failed to appreciate
