Tribunal Rules ESOP Discounts Are Deductible Expenses u/s 37(1) of Income Tax Act, Not Capital Waste.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Discount on issue of ESOP - The primary object of the aforesaid exercise is not to waste capital but to earn profits by securing consistent services of the employees and therefore, the same cannot be construed as short receipt of capital. Tribunal therefore has rightly held that incurring of the expenditure by the assessee entitles him for deduction under Section 37(1) of the Act subject to fulfillment of the condition. - HC....