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M/s. Geojit Financial Services Ltd. vs. The DCIT, Corporate

Case No: I.T.A.No.418/COCH./2023
Court: Income Tax Appellate Tribunal, Cochin Bench
Date: 9/25/2024

Parties Involved

appellantM/s. Geojit Financial Services Ltd.
respondentThe DCIT, Corporate

Facts Summary

The assessee, M/s. Geojit Financial Services Ltd., appealed against the National Faceless Appeal Centre's order for the assessment year 2018-2019. The Revenue argued that the Commissioner of Income Tax (Appeals) was not justified in deleting the disallowance of Rs.13,23,33,414/- on account of the Employee Stock Option Plan (ESOP). The assessee claimed that the discount on shares allotted under ESOP is a revenue expenditure and an ascertainable liability allowable as a deduction under section 37(1) of the Income Tax Act, 1961. The Tribunal reviewed the submissions and case laws, finding that the disallowance was correctly deleted as per the decisions of various High Courts and the ITAT.

Decision in favour of

Partly Assessee / Partly Revenue

Legal Issues

  • 1. Whether the disallowance of Rs.13,23,33,414/- on account of ESOP is justified?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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