M/S. BANDHAN BANK LTD. (ERSTWHILE GHOSH FINANCE LTD),KOLKATA vs. DCIT,CIR-5(1), KOL, KOLKATA

ITA 465/KOL/2023Status: DisposedITAT Kolkata26 August 2024AY 2016-17Bench: SHRI SANJAY GARG (Judicial Member), SHRI RAKESH MISHRA (Accountant Member)24 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that ESOP expenditure is revenue in nature and eligible for deduction under Section 37 of the Act. The claim made during assessment proceedings should be allowed, following previous judicial pronouncements.

What were the facts?

The assessee claimed ESOP expenses of Rs. 5,95,65,043/- during assessment proceedings, which was not claimed in the original or revised return. The Assessing Officer disallowed this claim, treating it as capital expenditure. The CIT(A) upheld the disallowance, stating a revised return was necessary for such additional claims.

What were the issues?

Whether ESOP expenses can be claimed as a deduction when not initially filed in the return, and if such expenditure is revenue or capital in nature.

Which sections of the Income-tax Act were involved?

Section 37,Section 17(2)(vi),Section 192

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Income Tax Appellate Tribunal, “C” BENCH KOLKATA

Before: SHRI SANJAY GARG & SHRI RAKESH MISHRA

For Appellant: Shri Biswanath Paul, FCA
For Respondent: Shri Subhro Das, Addl. CIT, Sr. DR
Hearing: 11.07.2024Pronounced: 26.08.2024

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as “the Ld. CIT(A)” passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2016-17 dated 15.03.2023, passed against the assessment order u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), dated 26.12.2018. 2. The grounds of appeal raised by the assessee are reproduced

The order continues below.

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