https://www.taxtmi.com/caselaws?id=434548 ESOP discount incurred by an employer as employee compensation was treated as an actual business cost, not a contingent or merely notional item, and was held allowable as revenue expenditure under section 37(1) of the Income-tax Act, 1961. The Tribunal accepted that issuing shares at a discount in consideration of services rendered creates an incurred obligation in the course of business, and the Revenue did not identify any legal or factual infirmity in the appellate finding or any contrary binding authority. The disallowance was therefore unsustainable and the deletion of the addition was upheld. en-us Fri, 24 Feb 2023 00:00:00 +0530 Mon, 27 Feb 2023 08:15:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=434548 ESOP discount incurred by an employer as employee compensation was treated as an actual business cost, not a contingent or merely notional item, and was held allowable as revenue expenditure under section 37(1) of the Income-tax Act, 1961. The Tribunal accepted that issuing shares at a discount in consideration of services rendered creates an incurred obligation in the course of business, and the Revenue did not identify any legal or factual infirmity in the appellate finding or any contrary binding authority. The disallowance was therefore unsustainable and the deletion of the addition was upheld. Case-Laws Income Tax Fri, 24 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=434548