https://www.taxtmi.com/caselaws?id=436767 The dominant issue was whether employee stock option (ESOP) discount/expenditure constitutes an allowable revenue deduction under s.37(1) of the Income-tax Act or is merely notional/contingent. The Tribunal held that ESOP cost forms part of employee compensation/perquisites and is incurred wholly and exclusively for business purposes; applying its earlier precedent, it is not a contingent or notional claim but an ascertained business expenditure. Consequently, the ESOP expenditure was allowed as a deduction under s.37(1), and the taxpayer's appeal was allowed. en-us Tue, 31 Jan 2023 00:00:00 +0530 Fri, 02 Jan 2026 11:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=436767 The dominant issue was whether employee stock option (ESOP) discount/expenditure constitutes an allowable revenue deduction under s.37(1) of the Income-tax Act or is merely notional/contingent. The Tribunal held that ESOP cost forms part of employee compensation/perquisites and is incurred wholly and exclusively for business purposes; applying its earlier precedent, it is not a contingent or notional claim but an ascertained business expenditure. Consequently, the ESOP expenditure was allowed as a deduction under s.37(1), and the taxpayer's appeal was allowed. Case-Laws Income Tax Tue, 31 Jan 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=436767