https://www.taxtmi.com/caselaws?id=249128 Discount on Employee Stock Option Plan shares was treated as allowable business expenditure under section 37 of the Income-tax Act, 1961 because it represented a benefit conferred on employees in the course of employment and an expenditure incurred by the employer. CBDT Circular No. 9 of 2007 was held inapplicable, as it addressed fringe benefit tax on specified securities and sweat equity shares, not the allowability of ESOP cost. Following the Special Bench ruling in Biocon Ltd., the discount was regarded as an ascertained liability rather than a contingent liability or mere short receipt, and the deduction accrued over the vesting period under the ESOP scheme. en-us Mon, 23 Jun 2014 00:00:00 +0530 Fri, 04 Jul 2014 20:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=249128 Discount on Employee Stock Option Plan shares was treated as allowable business expenditure under section 37 of the Income-tax Act, 1961 because it represented a benefit conferred on employees in the course of employment and an expenditure incurred by the employer. CBDT Circular No. 9 of 2007 was held inapplicable, as it addressed fringe benefit tax on specified securities and sweat equity shares, not the allowability of ESOP cost. Following the Special Bench ruling in Biocon Ltd., the discount was regarded as an ascertained liability rather than a contingent liability or mere short receipt, and the deduction accrued over the vesting period under the ESOP scheme. Case-Laws Income Tax Mon, 23 Jun 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=249128