ESOP Discount Allowable as Business Expenditure; ITAT Follows Karnataka HC, Revenue Appeal Dismissed

Advertisement DCIT Vs IBM India Private Limited (ITAT Bangalore) ESOP Discount Allowable as Business Expenditure; ITAT Follows Karnataka HC, Revenue Appeal Dismissed In this case, the AO disallowed ESOP expenditure of ₹90.30 crore on the ground that it was notional, capital in nature, and pending final adjudication before the Supreme Court. However, the CIT(A) deleted the disallowance by relying on earlier ITAT orders in the assessee’s own case. The ITAT upheld the CIT(A)’s order, holding that the issue is squarely covered in favour of the assessee by the Karnataka High Court, which h...