Question 1

What are the key legal issues in ITA 3513/MUM/2025?

Accepted Answer

1. Allowability of discount on issue of shares to employees under the ESOP Scheme 2. Allowability of legal and professional fees

Question 2

What are the facts of ITA 3513/MUM/2025?

Accepted Answer

Assessee is a company engaged in the business of providing investment advisory, portfolio management, financial advisory and support services. For the year under consideration, the assessee filed its original return of income on 30/11/2017 declaring loss of Rs.33,54,68,080/- and book profit u/s. 115JB of the Act at Rs.38,04,46,654/-. Subsequently, the assessee filed a revised return of income on 29/03/2018 declaring the same loss and book profit. The case was selected for scrutiny and statutory notices were issued to the assessee. In response thereto, the assessee filed requisite details and submissions as called for. The Ld.AO completed the assessment u/s.143(3) of the Act vide order dated 28/12/2019, by disallowing the discount on issue of shares to employees under the ESOP Scheme amounting to Rs.72,73,01,711/- and legal and professional fees amounting to Rs.17,08,00,832/-. The Ld.AO also charged interest u/s. 234C of the Act at Rs.16,89,641/-. Aggrieved by the assessment order, the assessee preferred appeal before the Ld.CIT(A). The Ld.CIT(A) confirmed the disallowances made by the Ld.AO and directed Ld.AO to recompute the interest u/s. 234C of the Act in accordance with law. Aggrieved by the order of the Ld.CIT(A), the assessee is in appeal before this Tribunal.

ITA 3513/MUM/2025

Parties Involved

Facts Summary

Legal Issues

Judgment Outcome

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