https://www.taxtmi.com/caselaws?id=426995 The High Court ruled in favor of the assessee, holding that the difference between the price of stock options and the prevailing market price can be claimed as a deduction under Section 37(1) of the Income Tax Act. The Court emphasized that the discount on ESOPs is an allowable deduction as it represents an ascertained liability, not a contingent one. The decision overturned the Income Tax Appellate Tribunal's ruling and established the deductibility of such expenditure for business purposes, ensuring consistent employee services. en-us Tue, 23 Aug 2022 00:00:00 +0530 Mon, 29 Aug 2022 10:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=426995 The High Court ruled in favor of the assessee, holding that the difference between the price of stock options and the prevailing market price can be claimed as a deduction under Section 37(1) of the Income Tax Act. The Court emphasized that the discount on ESOPs is an allowable deduction as it represents an ascertained liability, not a contingent one. The decision overturned the Income Tax Appellate Tribunal's ruling and established the deductibility of such expenditure for business purposes, ensuring consistent employee services. Case-Laws Income Tax Tue, 23 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=426995