Consistent Past Relief Continues: Mumbai ITAT Again Upholds ESOP Expense as Revenue u/s 37(1)

DCIT Vs Avendus Capital Private Limited (ITAT Mumbai)

Tribunal examined Revenue’s challenge against CIT(A)’s order allowing deduction for ESOP expenditure claimed by Assessee, a management consultancy & investment banking company. AO treated ESOP cost of ₹3.80 crore as capital outlay on the ground that it related to issue of shares & increase in equity base, arguing that it did not constitute real expenditure & relied on the pending SLP in Biocon. CIT(A), however, followed multiple earlier orders in Assessee’s own case consistently holding ESOP cost to be allowa

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