Expenses / Discount on ESOP exercised by the employees are allowable

Pr. CIT Vs New Delhi Television Ltd. (Delhi High Court) Legislature itself contemplates the discount on premium under ESOP as a benefit provided by the employer to its employees during the course of sendee. If the Legis­lature considers such discounted premium to the employees as a fringe benefit or ‘any consideration for employment’, it is not open to argue contrary. Once it is held as a consideration for employment, the natural corollary which follows is that such discount (i) is an expen­diture ; (ii) such expenditure is on account of an ascertained (not con­tingent) liability ; and ...