Taxability of amount received by an employee from redemption of Stock Appreciation Rights

Addl. Commissioner of Income Tax Vs Bharat V. Patel (Supreme Court of India) In the instant case, the fundamental question which arises for consideration before this Court is with regard to the taxability of the amount received by the Respondent on redemption of Stock Appreciation Rights (SARs.) The Tribunal was of the view that the stock options are capital assets and such assets in the instant case acquired for consideration, hence, gain arising therefrom is liable to capital gain tax. However, the stand of the Revenue before the Tribunal was that the amount in question is taxable as perquis...