Make My Trip (India) Private Limited vs. DCIT (International Taxation), Circle-16(1), New Delhi

Parties Involved

Facts Summary

The assessee, Make My Trip (India) Private Limited, is a travel agent and tour operator, wholly owned by Make My Trip Limited, Mauritius. For the Assessment Year 2011-12, the assessee claimed a deduction of ESOP costs amounting to Rs.11,35,61,564/- paid to its parent company. The Assessing Officer allowed this deduction. However, the Principal Commissioner of Income Tax (PCIT) revised this order, holding it erroneous and prejudicial to the revenue. The PCIT argued that the Assessing Officer failed to verify the ESOP expenses before allowing the deduction. The assessee appealed this revision, arguing that the deduction was allowable as it was a business expenditure under a contractual obligation. The assessee provided detailed information and documents to support its claim, including the ESOP scheme and the expenses claimed.…

Legal Issues

• 1. Whether the Principal Commissioner of Income Tax erred in law and facts by assuming jurisdiction under section 263 of the Income Tax Act, 1961 and passing the impugned order.
• 2. Whether the impugned order passed by the PCIT is bad in law, against the facts and circumstances of the case, and in violation of principles of natural justice.
• 3. Whether the PCIT erred in setting aside the assessment order for fresh examination and enquiry on the issue of deduction of ESOP costs.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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