₹903 Crore ESOP Expenditure Allowed as Business Expense Due to Binding HC Ruling

DCIT Vs IBM India Private Limited (ITAT Bangalore) The Income Tax Appellate Tribunal (ITAT), Bangalore, adjudicated an appeal filed by the Revenue against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Year 2022–23 concerning the allowability of Employee Stock Option Plan (ESOP) expenditure claimed by the assessee. The dispute centered on whether ESOP expenditure amounting to ₹903.03 crore qualified as a deductible business expenditure under Section 37(1) of the Income Tax Act, 1961. The assessee, engaged in software development, IT services, and related acti...