Avendus Capital P.Ltd, Mumbai vs Assessee

सव ी आय.पी. बंसल, या यक सद य एवं नरे कुमार ब लै या, लेखा सद य के सम

BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND

SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER

आयकर अपील सं/ I.T.A. No.4542/Mum/2013 ( नधारण वष / Assessment Year : 2009-10 M/s. Avendus Capital Pvt. बनाम/ The ACIT, Ltd., Range-10(1) Vs. IL&FS Financial Center, Mumbai-400 020 th 5 Floor, B-Quadrant, Bandra-Kurla Complex, Mumbai-400 051 थायी ले खा सं . /जीआइआर सं . /PAN/GIR No. :AABCC 2404Q (अपीलाथ /Appellant) .. ( यथ / Respondent) अपीलाथ ओर से/ Appellant by: Shri Sanjay Sanghvi Shri Ashish Mehta यथ क ओर से/Respondent by: Shri Asghar Zain

सन ु वाई क तार ख / Date of Hearing :24.06.2015 घोषणा क तार ख /Date of Pronouncement :24.06.2015

आदे श / O R D E R

PER N.K. BILLAIYA, AM:

This appeal by the assessee is preferred against the order of the Ld. CIT(A)-21, Mumbai dt. 11.3.2013 pertaining to assessment year 2009-10.

2. The assessee has raised two substantive grounds of appeal. At the very outset, the Ld. Counsel for the assessee stated that he is not pressing ground No. 1, the same is dismissed as not pressed.

2 ITA. No. 4542/M/2013 3. In respect of the grievance raised vide ground No. 2, the Ld. Counsel for the assessee stated that it is squarely covered in favour of the assessee and against the Revenue by the decision of the Tribunal Special Bench Bangalore in the case of Biocon Vs DCIT 25 ITR (T) 602 which was followed by the Tribunal Pune Bench in the case of Sandvik Asia Pvt. Ltd. Vs ACIT in ITA Nos. 1841, 1842, 2053 & 2054/PN/2012.

4. The Ld. Departmental Representative could not bring any distinguishing decision in favour of the Revenue.

5. We have carefully perused the orders of the authorities below and the decision of the Tribunal brought to our notice. The grievance of the assessee is that the Ld. CIT(A) erred in confirming the disallowance of Rs. 1,20,47,684/- claimed u/s. 37(1) of the Act towards Employee Stock Option Plan (ESOP) expenses as capital expenditure. An identical issue was considered by the Tribunal Special Bench Bangalore in the case of Biocon (supra) has held that ESOP expenses is an allowable deduction u/s. 37(1) of the Act. The same view was followed by ITAT Pune Bench in the case of Sandvik Asia (supra). Respectfully following the decision of the Co ordinate Benches, we set aside the order of the Ld. CIT(A) and direct the AO to allow the ESOP expenses as revenue expenditure.

6. In the result, the appeal filed by the assessee is allowed.

Order pronounced in the open court at the time of hearing on 24th June, 2015

Sd/- Sd/-

(I.P. BANSAL ) (N.K. BILLAIYA) या यक सद य/JUDICIAL MEMBER लेखा सद य / ACCOUNTANT MEMBER मंब ु ई Mumbai; दनांक Dated : 24 June , 2015 th

व. न.स./ RJ , Sr. PS 3 ITA. No. 4542/M/2013

आदे श क त ल प अ े षत/Copy of the Order forwarded to :

1. अपीलाथ / The Appellant

2. यथ / The Respondent.

3. आयकर आयु त(अपील) / The CIT(A)-

4. आयकर आयु त / CIT

5. वभागीय त न ध, आयकर अपील य अ धकरण, मंब ु ई / DR, ITAT, Mumbai

6. गाड फाईल / Guard file.

आदे शानस ु ार/ BY ORDER, स या पत त //True Copy// उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपील य अ धकरण, मंब ु ई / ITAT, Mumbai