ACIT, Circle 6(1)(2) vs. M/s. Ask Wealth Advisors Pvt. Ltd.

Parties Involved

Facts Summary

The case involves an appeal by the Revenue against the order of the Commissioner of Income Tax (Appeals) (CIT(A)) regarding the disallowance of certain deductions claimed by the assessee, M/s. Ask Wealth Advisors Pvt. Ltd., for the assessment year 2017-18. The primary issues were the disallowance of expenditure claimed on Employee Stock Option Plan (ESOP) and the disallowance of deduction under section 115JB of the Income Tax Act, 1961. The assessee had claimed deductions for ESOP expenditure and the lower of brought forward business loss or unabsorbed depreciation. The Assessing Officer (AO) had disallowed these deductions, which were subsequently allowed by the CIT(A). The Revenue appealed to the Income Tax Appellate Tribunal (ITAT) against the CIT(A)'s order.…

Legal Issues

• 1. Disallowance of ESOP expenditure
• 2. Disallowance of deduction under section 115JB

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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