https://www.taxtmi.com/caselaws?id=411759 The Tribunal ruled in favor of the appellant, directing the AO to allow the claim for ESOP expenses under section 37(1) of the Income-tax Act, 1961. The Tribunal emphasized that ESOP expenses are deductible when rights are vested, not when exercised, following the precedent set by the Karnataka High Court in the Biocon Ltd. case. The AO's disallowance of the claim due to non-deduction of TDS when ESOP was vested was overturned, with the Tribunal instructing TDS deduction upon exercise or reversal if necessary. en-us Wed, 01 Sep 2021 00:00:00 +0530 Wed, 01 Sep 2021 22:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=411759 The Tribunal ruled in favor of the appellant, directing the AO to allow the claim for ESOP expenses under section 37(1) of the Income-tax Act, 1961. The Tribunal emphasized that ESOP expenses are deductible when rights are vested, not when exercised, following the precedent set by the Karnataka High Court in the Biocon Ltd. case. The AO's disallowance of the claim due to non-deduction of TDS when ESOP was vested was overturned, with the Tribunal instructing TDS deduction upon exercise or reversal if necessary. Case-Laws Income Tax Wed, 01 Sep 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=411759