SSI Ltd. v. DCIT

ACIT Cir 2(2), Mumbai vs. State Bank of India, Mumbai

In the result, appeal of the revenue is dismissed

Bench: Shri G.S. Pannu & Shri Pawan Singhstate Bank Of India Acit Circle (2)(2), Financial Reporting, Compliance & Mumbai. Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent) Acit Circle (2)(2), State Bank Of India Mumbai. Financial Reporting, Compliance & Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent)

…for the assessee relied upon the decision in CIT Versus Canara Bank (63 ITR 328)(SC), Sutlej Cotton Mills Ltd versus ITA No. 4736 & 4598/M/2010- State Bank of India CIT (166 ITR 108), Laurids Knudsen Maskinfabrik Ltd Vs ITO (77 ITD 212), SSI Ltd Vs DCIT (85 TTJ 1049), CIT Vs Telco Ltd (60 ITR 405) (SC), Homi Mehta & Sons Pvt Ltd Vs CIT (222ITR 528) (Bom) and EID Parry Ltd (174 ITR 11) (Mad). 42. We have considered the rival submission of the parties and have gone through the orders of authorities below. The assessing officer disallowed exchange Gain on repatriation GDR holding that gain of the amount ari…

Korn Ferry International P.Ltd, Mumbai vs. ACIT (OSD) Cir 3(2), Mumbai

Bench: Shri Amit Shukla () & Shri Ashwani Taneja (Acountant Member)

…the following decision in support of the proposition that the difference in market price and the cost price of shares allotted to the employees of the assessee company under ESOP scheme is allowed deduction u/s.37(1) of the Act" (i) S. S. I. Limited Vs. DCIT 85 TTJ 1049)(Chennai) (ii) ACIT Vs. Spray Engineering Devices Ltd. ITA No. 701/Chd.1 2009(CHD) DCIT Vs. Accenture Services Pvt. Ltd. ITA (iii) No.4540/M108 (MUM) 6.3. On the other, hand, the LAO has held that the shares were the capital of the appellant company and any loss on account of capital should be considered as capital loss and not the revenue expe…

DCIT 3(2)(2), Mumbai vs. Korn Ferry International P.Ltd, Mumbai

Bench: Shri Amit Shukla () & Shri Ashwani Taneja (Acountant Member)

…the following decision in support of the proposition that the difference in market price and the cost price of shares allotted to the employees of the assessee company under ESOP scheme is allowed deduction u/s.37(1) of the Act" (i) S. S. I. Limited Vs. DCIT 85 TTJ 1049)(Chennai) (ii) ACIT Vs. Spray Engineering Devices Ltd. ITA No. 701/Chd.1 2009(CHD) DCIT Vs. Accenture Services Pvt. Ltd. ITA (iii) No.4540/M108 (MUM) 6.3. On the other, hand, the LAO has held that the shares were the capital of the appellant company and any loss on account of capital should be considered as capital loss and not the revenue expe…

DCIT 3(2), Mumbai vs. Kotak Mahindra Asset Management Co. Ltd, Mumbai

Bench: Shri Joginder Singh & Shri Rajendraassessment Year-2003-04 Dcit-3(2), Kotak Mahindra Asset Room No.608, 6Th Floor, Management Co. Ltd. बनाम/ Aayakar Bhavan, 5A, 5Th Floor, Bakhtawar, Vs. M.K.Road, 229, Nariman Point, Mumbai-400020 Mumbai-400021 Pan No.Aaack5576C (राज"व /Revenue) ("नधा"रती /Assessee) Assessment Year-2004-05 Dcit-3(2), Kotak Mahindra Asset Room No.608, 6Th Floor, Management Co. Ltd. बनाम/ Aayakar Bhavan, 5A, 5Th Floor, Bakhtawar, Vs. M.K.Road, 229, Nariman Point, Mumbai-400020 Mumbai-400021 Pan No.Aaack5576C (राज"व /Revenue) ("नधा"रती /Assessee) Assessment Year-2004-05

…rred the expenditure and there has been an actual cash outflow from the assessee towards such expenses and that the expenditure was not of notional cost. The assessee relied on the decision of the Chennai Bench of the Tribunal in the case of SSI Ltd. v. DCIT, 85 TTJ 1049 (Chn), wherein it was held that the discount on ESOP i.e., the difference between the market value of the shares and the price at which the shares have been given to the employees has to be allowed as an expenditure. The assessee also brought to the notice of the AO, CBDT Circular No.9 of 2007 dated 20.12.07 which was issued in relation to fringe…

M/S. Kotak Mahindra Asset Mangagement Co. Ltd, Mumbai vs. The CIT (A)-III, Mumbai

Bench: Shri Joginder Singh & Shri Rajendraassessment Year-2003-04 Dcit-3(2), Kotak Mahindra Asset Room No.608, 6Th Floor, Management Co. Ltd. बनाम/ Aayakar Bhavan, 5A, 5Th Floor, Bakhtawar, Vs. M.K.Road, 229, Nariman Point, Mumbai-400020 Mumbai-400021 Pan No.Aaack5576C (राज"व /Revenue) ("नधा"रती /Assessee) Assessment Year-2004-05 Dcit-3(2), Kotak Mahindra Asset Room No.608, 6Th Floor, Management Co. Ltd. बनाम/ Aayakar Bhavan, 5A, 5Th Floor, Bakhtawar, Vs. M.K.Road, 229, Nariman Point, Mumbai-400020 Mumbai-400021 Pan No.Aaack5576C (राज"व /Revenue) ("नधा"रती /Assessee) Assessment Year-2004-05

…rred the expenditure and there has been an actual cash outflow from the assessee towards such expenses and that the expenditure was not of notional cost. The assessee relied on the decision of the Chennai Bench of the Tribunal in the case of SSI Ltd. v. DCIT, 85 TTJ 1049 (Chn), wherein it was held that the discount on ESOP i.e., the difference between the market value of the shares and the price at which the shares have been given to the employees has to be allowed as an expenditure. The assessee also brought to the notice of the AO, CBDT Circular No.9 of 2007 dated 20.12.07 which was issued in relation to fringe…

Addl Cirt G 3(2), Mumbai vs. Aditya Birla Nuvo Ltd, Mumbai

Appeal of the assessee is partly allowed

…axy Laboratories(124TTJ771),he disallowed the said expenditure.In the appellate proceedings,the FAA upheld his order. 10.1.Before us, the AR relied upon the cases of PVP Ventures Ltd.(211 taxmann 554);Sterlite Optical Technologies (2 ITAT India 184);SSI Ltd. (85 TTJ 1049) and Biocon Limited.DR supported the order of the FAA. 10.2.We have heard the rival submissions and perused the material before us.We find that the Special Bench of the Tribunal in the case of Biocon Limited(144ITS215)has decided the issue of ESPO in favour of the assessee in following manner. 11.3 We, therefore, sum up the position that the disc…

Tata Consultancy Services Ltd, Mumbai vs. Addl CIT 2(3), Mumbai

The appeal is partly allowed

Bench: Sh. A.D. Jain & Sh. Rajendraassessment Year: 2005-06 Pan : Aaacr4849R M/S. Tata Consultancy Services Ltd. Vs. Addl. Commr. Of Income-Tax, 9Th Floor, Nirmal Building, Range 2(3), Nariman Point, Mumbai. Mumbai. (Appellant) (Respondent) Appellant By:Sh. Dinesh Vyas, Sr. Advocate Respondent By:Sh. N.K. Chand, Cit(Dr) Date Of Hearing : 30/07/2015 Date Of Pronouncement: 04/11/2015 Order Per A.D. Jain, Jm

…expenditure accounted for by the assessee is as per the SEBI Guidelines. Reliance has been placed on the following case laws: i) “Biocon Limited”, 25 ITR (T) 402 (SB) Bangalore ii) “Nova Nordisk India (P) Ltd.”, 63 SOT 242 (ITAT Banglore) iii) “SSI Ltd.”, 85 TTJ 1049 (Chennai ITAT) iv) “PVP Ventures Limited”, ( 211 Taxman 554) (Mad) v) Spray Engineering, 53 SOT 70 (ITAT Chandigarh) vi) “Dr. Reddy’s Laboratories Limited”, 30 ITR (T) 393 (ITAT Hyd) vii) “Seassoon David”, 118 ITR 261 (SC). 28. On the other hand, the ld. DR has placed strong reliance on the impugned order. 29. In this regard, the Special Bench…

Asst CIT 4(3), Mumbai vs. People Interactive (I) P.Ltd, Mumbai

Bench: Shri Shailendra Kumar Yadav & Shri Ramit Kochar

…urt decision in Bharat Earth Movers v. CIT (2000) 245 ITR 428(SC) where by it has been held by Apex Court that provision made for leave encashment is an allowable expenditure. g) The assessee company also relied upon the decision of SSI Ltd. V. DCIT (2004) 85 TTJ 1049(Chen. Trib.) where the Chennai Tribunal allowed the claim of the tax payer under the similar facts. h) The assessee company submitted that Chandigarh Bench of Tribunal has allowed deduction with respect to issue of sweat equity shares at predetermined price for consideration other than cash. 5 People Interactive India Private Limited ITA Nos.…

Asst CIT 4(3), Mumbai vs. People Ineractive (I) P.Ltd, Mumbai

Bench: Shri Shailendra Kumar Yadav & Shri Ramit Kochar

…urt decision in Bharat Earth Movers v. CIT (2000) 245 ITR 428(SC) where by it has been held by Apex Court that provision made for leave encashment is an allowable expenditure. g) The assessee company also relied upon the decision of SSI Ltd. V. DCIT (2004) 85 TTJ 1049(Chen. Trib.) where the Chennai Tribunal allowed the claim of the tax payer under the similar facts. h) The assessee company submitted that Chandigarh Bench of Tribunal has allowed deduction with respect to issue of sweat equity shares at predetermined price for consideration other than cash. 5 People Interactive India Private Limited ITA Nos.…

People Interactive (I) P.Ltd, Mumbai vs. Asst CIT 4(3), Mumbai

Bench: Shri Shailendra Kumar Yadav & Shri Ramit Kochar

…urt decision in Bharat Earth Movers v. CIT (2000) 245 ITR 428(SC) where by it has been held by Apex Court that provision made for leave encashment is an allowable expenditure. g) The assessee company also relied upon the decision of SSI Ltd. V. DCIT (2004) 85 TTJ 1049(Chen. Trib.) where the Chennai Tribunal allowed the claim of the tax payer under the similar facts. h) The assessee company submitted that Chandigarh Bench of Tribunal has allowed deduction with respect to issue of sweat equity shares at predetermined price for consideration other than cash. 5 People Interactive India Private Limited ITA Nos.…