ESOP Discount Allowed as Revenue Expense: ITAT rejects Notional Loss Claim

ACIT Vs Embassy Developments Limited (ITAT Mumbai) The appeal before the Tribunal was filed by the Revenue against the order passed by the Commissioner of Income Tax (Appeals) [CIT(A)] for the assessment year 2023–24. The central issue in dispute was whether the assessee was entitled to claim deduction of Employee Stock Option Plan (ESOP) expenses under Section 37(1) of the Income Tax Act, 1961. The assessee is engaged in various real estate-related activities, including property advisory, marketing, maintenance, engineering consultancy, construction, and development. For the relevant assess...