TDS in case of ESOP is deductible at time option is exercised and shares are allotted to employees

DCIT Vs Total Energies Marketing India Pvt. Ltd. (ITAT Mumbai) ITAT Mumbai held that TDS is not deductible at the time of grant of ESOP but is deductible at the time of option is exercised by employees of the assessee and shares are allotted to the employees. Facts- Issues involved in the present appeal are whether tax is deductible on ESOP provisions as soon as it is granted and provided for in the books of account or at the time of allotment of shares to the employees when it becomes chargeable to tax in their hands as perquisites u/s 17(2)(vi) of the Act; whether tax is deductible on the di...