https://www.taxtmi.com/caselaws?id=59450 Shares acquired under an ESOP were treated as a capital asset, but no short-term capital gain arose because the assessee incurred no cost of acquisition and the then-applicable regime did not tax the stock-option benefit as fringe benefit. Applying the rule that capital gains cannot be computed where the cost of acquisition is indeterminable, the sale proceeds could not be brought to tax. Even on the alternative view that exercise date market value was a deemed benefit, the shares were exercised and sold on the same day, so no taxable gain emerged. en-us Tue, 30 Jun 2009 00:00:00 +0530 Wed, 04 Oct 2023 13:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59450 Shares acquired under an ESOP were treated as a capital asset, but no short-term capital gain arose because the assessee incurred no cost of acquisition and the then-applicable regime did not tax the stock-option benefit as fringe benefit. Applying the rule that capital gains cannot be computed where the cost of acquisition is indeterminable, the sale proceeds could not be brought to tax. Even on the alternative view that exercise date market value was a deemed benefit, the shares were exercised and sold on the same day, so no taxable gain emerged. Case-Laws Income Tax Tue, 30 Jun 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59450