https://www.taxtmi.com/caselaws?id=471151 Employee stock option scheme expenditure actually incurred and cross-charged by a parent entity is deductible as business expenditure under Section 37(1) of the Income-tax Act. Characterising the cost as notional, contingent or capital does not justify disallowance where jurisdictional High Court and coordinate bench rulings recognise ESOP costs as revenue expenditure. Consistency also supports deduction where the identical issue on unchanged facts has been accepted for the same taxpayer in an earlier assessment year. en-us Wed, 02 Apr 2025 00:00:00 +0530 Sat, 22 Aug 2026 22:09:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=471151 Employee stock option scheme expenditure actually incurred and cross-charged by a parent entity is deductible as business expenditure under Section 37(1) of the Income-tax Act. Characterising the cost as notional, contingent or capital does not justify disallowance where jurisdictional High Court and coordinate bench rulings recognise ESOP costs as revenue expenditure. Consistency also supports deduction where the identical issue on unchanged facts has been accepted for the same taxpayer in an earlier assessment year. Case-Laws Income Tax Wed, 02 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=471151