RAMAA SIVARAM Vs. CHIEF COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Petitioner has sought for quashing of the order dt. 21st Jan., 2010, by writ of certiorarified mandamus and to direct the second Respondent to refund the amount of Rs. 25,28,196 along with interest admissible thereon.

(2.) A reading of the order under challenge shows that the CIT considered the claim of the Petitioner as regards the assessability in respect of perquisite value of stock options allotted to the Petitioner as an employee of Infosys Technologies Ltd., Bangalore. The Petitioner submitted that they were covered by the Employees Stock Option (ESOP) Scheme of the company, consequently, deduction of TDS on the allotment is bad in law.

(3.) BY order dt. 7th Jan., 2010, the CIT pointed out that as per the orders of the Tribunal, Bangalore, dt. 28th June, 2002, the demand of TDS in respect of perquisite value of stocks under the ESOP Scheme was held to be bad in law. The decision of the apex Court in CIT v. Infosys Technologies Ltd. (supra) confirmed the legal position as regards the assessability of the perquisite value of stocks under the ESOP Scheme. The CIT directed the first Respondent to consider the request of the Petitioner.