Discount on shares under ESOPs is allowable expenditure

Brief of the Case ITAT Chandigarh held In the case of M/s GlaxoSmithKline Consumer Healthcare Ltd vs. The JCIT that it is a settled law that an unascertained liability has to be allowed even if the same is quantified on a future date. In this case the incentive plan so formulated by the assessee is a very common form of scheme formed by many of the companies popularly known as ‘ESOP’ scheme. The terms and conditions of the investment plan of the assessee are same as in any general scheme of ESOP. The question of liability of this type of provision came before the Bangalore Bench of the Tri...