https://www.taxtmi.com/caselaws?id=348838 ESOP discount was treated as deductible revenue expenditure because the difference between market value and issue price represents employee compensation, the liability accrues on vesting, and it is not contingent merely because exercise occurs later; where views conflicted, the view favourable to the assessee was applied. A mere provision for standard and non-performing assets was held not deductible, because RBI prudential directions govern disclosure and income recognition but do not override the Income-tax Act's computation rules, and deduction requires an actual write off or another statutorily permitted claim. The assessee thus succeeded on the ESOP issue and failed on the NPA provision. en-us Wed, 27 Sep 2017 00:00:00 +0530 Sun, 01 Oct 2017 08:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=348838 ESOP discount was treated as deductible revenue expenditure because the difference between market value and issue price represents employee compensation, the liability accrues on vesting, and it is not contingent merely because exercise occurs later; where views conflicted, the view favourable to the assessee was applied. A mere provision for standard and non-performing assets was held not deductible, because RBI prudential directions govern disclosure and income recognition but do not override the Income-tax Act's computation rules, and deduction requires an actual write off or another statutorily permitted claim. The assessee thus succeeded on the ESOP issue and failed on the NPA provision. Case-Laws Income Tax Wed, 27 Sep 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=348838