ITA Nos.1341/Bang/2011 & 235/Bang/2012

N.V. Vasudevan, Judicial Member - ITA 1341/Bang/2011 is an appeal by the revenue and ITA No.235/Bang/2012 is an appeal by the assessee. Both these appeals are directed against the order dated 31.10.2011 of the CIT(Appeals)-V, Bengaluru.

2. The assessee is an individual and is a qualified software engineer. He is a M. Tech from IIT, Mumbai. The assessee was deputed to USA in the year 1995 by his then employer Aerospace Systems Private Ltd., India, ["ASPL, India" for short] as an independent Consultant to SIRF Technology Inc., USA ["SIRF, USA" for short]. He served in USA in aggregate for nearly six years, initially from 1995 to 1998 as an employee of ASPL, India; and later as an employee of SIRF, USA, from 2001 to 2004. Thereafter, the assessee returned to India and became an employee of SIRF, India.

3. SIRF, USA granted certain Stock Options to the assessee on 04.10.1996 ["grant date"] i.e., while the assessee was an independent consultant, which gave the right to the assessee to buy/acquire 35,000 shares of the common Stock of SIRF, USA, at an Exercise Price of USD 0.08 each, pursuant to a Stock Option Plan ["SOP"] CALLED "1995 Stock Plan".