TSI Yatra Private Limited Vs. The Dy. C. I.T.
Parties Involved
Facts Summary
During the assessment proceedings for A.Y 2018-19, the Assessing Officer noticed that TSI Yatra Private Limited had debited Rs. 93 lakhs in the Profit and Loss Account towards the cost of share awards granted under the Employee Stock Option Plan (ESOP) to its employees. The Assessing Officer disallowed this expense under section 37 of the Income-tax Act, 1961, and added it to the assessee’s income. This decision was upheld by the Commissioner of Income Tax (Appeals). The assessee, aggrieved by this decision, filed an appeal before the Income Tax Appellate Tribunal, raising six grounds of appeal. Grounds 1 to 4 challenged the assumption of jurisdiction by the Assessing Officer, while grounds 5 and 6 contested the disallowance of ESOP expenses.…
Decision in favour of
Assessee
Legal Issues
- 1. Assumption of jurisdiction by the Assessing Officer due to faulty notice u/s 143(2) and lack of draft assessment order.
- 2. Disallowance of ESOP expenses amounting to Rs. 93 lakhs by the Assessing Officer.
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
5 precedents cited in this judgement.
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