Discounts Not Capital Outlay: Tribunal Rejects Intangible Asset Theory

DCIT Vs Flipkart India Pvt Ltd (ITAT Bangalore)

Marketing Intangibles Theory Rejected Again; ₹6,006 Cr & ₹4,016 Cr Additions Deleted—ESOP Cross-Charge Also Allowed

Profit Foregone Is Not Capital Expenditure—Intangibles Theory Rejected Once More & ESOP Cross-Charge Is Employee Cost—Allowed u/s 37; No TDS u/s 195

ITA Nos.1394 & 1395/Bang/2025 – AYs 2020-21 & 2021-22 – Order dated 04.12.2025

Revenue filed appeals challenging CIT(A)’s deletion of massive additions made by AO on two counts:

(1)

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