expenditure incurred in respect of Shares of
holding company (hereinafter referred as ESOP) to its
employees.
b. The claim for deduction of Education Cess ... issue relates to disallowance of claim of expenditure
incurred in respect of ESOP (Employees Stock Option Programme).
The A.O. noticed that the assessee
have following identical grounds and issues.
i. Whether tax is deductible on ESOP provisions as soon as it is granted
and provided ... appellate source on discounts and source on year
order dated ESOP of ₹ rebates of ₹ end provisions
14/11/2022
disallowing charges
paid in respect of Employees Stock Option Plan (ESOP). For this,
assessee has raised following ground ... Company recharged Rs.33,89,770 to FWEL for ESOP vested to its
employees."
The AO after considering the submissions of the assessee held
claimed on account of reimbursement paid to
the parent company towards ESOP for granting stock options to employees of
the appellant ... erred on facts and in law in holding that ESOP is a
part of salary and since the appellant did not deduct
section 263 of the Act.
3. Disallowance of Employee Stock Option Plan
(ESOP) expenses of INR 3,76,75,732.
3.1 On the facts ... erred in observing that the grant
of ESOPs to the employee does not amount to
incurring of expenditure wholly and exclusively for
the purpose
fair value of other assets while computing the
goodwill.
ii) Disallowance of ESOP Expenses amounting to Rs.
14,99,05,312/- claimed on account ... reimbursement paid to the
parent company towards ESOP for granting Stock option to the
assessee's employees.
iii) Non granting of deduction onprofit
which,
only issue urged by the assessee relates to disallowance of "ESOP
expenses" claimed by the assessee.
IT(TP)A No.759/Bang ... brief.
The assessee has floated "Employees Stock Option Scheme" (ESOP).
During the year under consideration, the assessee has vested ESOP
rights to certain
action of the assessing
officer by disallowing expenses paid towards reimbursement of
ESOP costs of employees of L&T deputed on long-term basis ... failed to
appreciate the expense was not in the nature of ESOP expense for
the appellant but reimbursement of personnel-related costs of the
deputed
with regard to the
allowability of expenses on Employees Stock Options (ESOP) amounting
to Rs.47,03,67,525/-.
13.1. We have heard rival submissions ... pertaining to assessment year 2013-14, the company has claimed
deduction towards ESOP expenditure of Rs. 47,03,67,525/- on the basis
of options
before High Court.
2.4 The Ld.CIT(A) erred in deleting the ESOP expenses ... fails to appreciate that ESOP expenses only going to increase the share
capital of the company and should be treated as capital expenditure
