Held that the purpose of granting the employees of the assessee restricted stock units was to retain and motivate them to continue employment with the assessee. The cost incurred by the associated enterprise on exercise of the restricted stock units by the employees of the assessee was the cost reimbursed by the assessee which was initially picked up by the associated enterprise. On the facts, the arm\u2019s length price of the employees\u2019 stock option plan expenses could not be taken as nil. The transfer pricing addition is set aside and the Transfer Pricing Officer\/Assessing Officer is to recompute the arm\u2019s length price and the transfer pricing adjustment, if any, following the method adopted by the assessee for determination of the arm\u2019s length price of the international transaction of reimbursement of employees\u2019 stock option plan expenses.(AY.2018-19)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 92C : Transfer pricing-Arm\u2019s length price-Avoidance of tax-International transaction-Employees\u2019 Stock Option Plan Expenses-Purpose of granting employees restricted stock units to retain and motivate them to continue employment with assessee-Arm\u2019s length price of employees stock option plan expenses could not be taken as nil-Arm\u2019s length price and transfer pricing adjustment, if any, to be recomputed following method adopted by assessee.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-44996","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bHK","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=44996"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44996\/revisions"}],"predecessor-version":[{"id":44997,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44996\/revisions\/44997"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=44996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=44996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=44996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}