Case Law Details
Nuvama Wealth and Investment Limited Vs ACIT (ITAT Hyderabad)
ITAT Hyderabad held that order passed without giving reasons for the conclusions arrived at is a non-speaking order and the same is liable to be set aside.
Facts- During the course of scrutiny of the return of income for the assessment year 2017-18, AO disallowed the Employee Stock Option Plan (ESOP) cost claimed by the assessee as expenditure.
Assessee preferred appeal before the learned CIT(A) and submitted that under the ESOP scheme formulated by Edelweiss Financial Services Limited (EFSL) of which the assessee is a subsidiary, the assessee claimed deduction of the difference between the market price of EFSL shares as on the date of exercise by the employees and the grant price of such shares as expenditure under section 37(1) of the Act.
CIT(A) observed that since the assessee failed to furnish the list of employees with Name/PAN/and the amounts added to salary on account of ESOP and the particulars of TDS deducted and paid, it indicates the failure of the assessee to deduct the TDS and, therefore, u/s. 40(a)(ia) of the Act, 30% of the ESOP cost had to be disallowed and be added to the income of the assessee.
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