Discount on issue of ESOP allowable as deduction from business income

DCIT Vs Goldman Sachs (India) Securities Pvt. Ltd (ITAT Mumbai) ITAT Mumbai held that discount on issue of Employee Stock Option Plan [ESOP] is allowable as deduction in computing income under the head profits and gains of the business. Accordingly, appeal of revenue dismissed and order of CIT(A) upheld. Facts- AO completed the assessment u/s. 143(3) read with section 144C(1) of the Act on 28.12.2016 by making disallowances towards Employee Stock Option Plan (ESOP) cost of Rs. 5 6,44,29,191/ -, holding the same to be notional and contingent in nature; and charges of Rs. 37,11,074/- paid to th...