The Commissioner of Income-tax, LTU, Bangalore / The Dy. Commissioner of Income-tax, LTU, Bangalore v. Biocon Ltd
[Citation -2020-LL-1111-49]

Citation 2020-LL-1111-49
Appellant Name The Commissioner of Income-tax, LTU, Bangalore / The Dy. Commissioner of Income-tax, LTU, Bangalore
Respondent Name Biocon Ltd.
Court HIGH COURT OF KARNATAKA
Relevant Act Income-tax
Date of Order 11/11/2020
Assessment Year 2003-04
Judgment View Judgment
Keyword Tags allowable deduction • market price • remuneration • esop


1 IN HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS 11TH DAY OF NOVEMBER 2020 PRESENT HON BLE MR. JUSTICE ALOK ARADHE AND HON BLE MR. JUSTICE H.T.NARENDRA PRASAD I.T.A. NO.651 OF 2013 BETWEEN: 1. COMMISSIONER OF INCOME-TAX LTU JSS TOWERS BSK III STAGE BANGALORE. 2. DY. COMMISSIONER OF INCOME-TAX LTU JSS TOWERS BSK III STAGE BANGALORE ... APPELLANTS (BY SRI.K.V.ARAVIND, ADV.,) AND: M/S BIOCON LTD. 20TH KM, HOSUR ROAD ELECTRONIC CITY HEBBAGODI BANGALORE - 560 100. ... RESPONDENT (BY SRI.T.SURYANARAYANA, ADV.) --- 2 THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 16.07.2013 PASSED IN ITA NO.368/BANG/2010 FOR ASSESSMENT YEAR 2003-04, PRAYING TO: (I) FORMULATE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE. (II) ALLOW APPEAL AND SET ASIDE ORDERS PASSED BY ITAT, BANGALORE IN ITA NO.368/BANG/2010 DATED 16.06.2013 CONFIRMING ORDER OF APPELLATE COMMISSIONER AND CONFIRM ORDER PASSED BY DEPUTY COMMISSIONER OF INCOME TAX, LTU, BANGALORE. THIS ITA COMING ON FOR FINAL HEARING, THIS DAY, ALOK ARADHE J., DELIVERED FOLLOWING: JUDGMENT This appeal under Section 260A of Income Tax Act, 1961 (hereinafter referred to as Act for short) has been preferred by revenue. subject matter of appeal pertains to Assessment year 2003-04. appeal was admitted by bench of this Court vide order dated 31.01.2014 on following substantial questions of law: (i) Whether on facts and in circumstances of case and in law 3 tribunal was right in holding that discount on issue of ESOP is allowable deduction in computing income under head profits and gains of business? (ii) Whether on facts and in circumstances of case and in law tribunal was right in holding that difference between market price of shares at time of grant of option and offer price amounts to discount and same has to be treated as remuneration to employees for their continuity of service? (iii) Whether on facts and in circumstance of case and in law tribunal committed error in not in not examining scheme of ESOP from which it is clear that employees will not get any right in shares till completion of period prescribed and expenditure claimed is contingent and recorded perverse finding? 2. For reasons assigned by us in judgment passed today in I.T.A.No.653/2013, substantial questions of law framed by bench of this 4 court are answered against revenue and in favour of assessee. In result, we do not find any merit in this appeal, same fails and is hereby dismissed. Sd/- JUDGE Sd/- JUDGE ss Commissioner of Income-tax, LTU, Bangalore / Dy. Commissioner of Income-tax, LTU, Bangalore v. Biocon Ltd.
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