https://www.taxtmi.com/caselaws?id=461160 ITAT Mumbai allowed the appeal regarding ESOP expenses claimed under section 37(1), holding that such expenses are allowable deductions as they are incurred for business purposes to retain employee talent, consistent with previous tribunal decisions for the same assessee. The tribunal deleted the disallowance under section 14A, ruling that the Finance Act 2022 amendment cannot have retrospective effect and provisions don't apply when no exempt income is received during the relevant year, following Delhi HC precedents. Additionally, the tribunal held that section 14A disallowances cannot be added while computing book profit under section 115JB. en-us Thu, 10 Aug 2023 00:00:00 +0530 Tue, 18 Mar 2025 19:01:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=461160 ITAT Mumbai allowed the appeal regarding ESOP expenses claimed under section 37(1), holding that such expenses are allowable deductions as they are incurred for business purposes to retain employee talent, consistent with previous tribunal decisions for the same assessee. The tribunal deleted the disallowance under section 14A, ruling that the Finance Act 2022 amendment cannot have retrospective effect and provisions don't apply when no exempt income is received during the relevant year, following Delhi HC precedents. Additionally, the tribunal held that section 14A disallowances cannot be added while computing book profit under section 115JB. Case-Laws Income Tax Thu, 10 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=461160