Expenses on ESOP scheme held allowable u/s 37(1) - ESOP expenses actually incurred are allowable

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....In a case before ITAT Delhi, the issue was whether expenses incurred on Employee Stock Option (ESOP) scheme are allowable u/s 37(1). The AO disallowed the expenses, deeming them as notional and contingent. However, the CIT(A) allowed the expenditure. The assessee, a private limited company in real estate consultancy, argued that ESOP expenses were actually incurred. Citing precedents like M/S. BIOCON LTD. and LEMON TREE HOTELS LTD., the Tribunal upheld the CIT(A)'s decision, stating that ESOP expenses are allowable. The Revenue's appeal was dismissed.....