Right to exercise an option is a capital asset and gains arising on sale are ‘long term capital gains’ if such right is held for more than three years

Abhiram Seth Vs. JCIT (ITAT Delhi)

Facts :- Abhiram Seth (the assessee) was employed in an executive position with M/s. PepsiCo India Holdings (P) Ltd., part of PepsiCo Inc.The assessee was granted valuable rights in shares of Pepsi Co Inc. Employees’ Stock Options [ESOP] held with Barry Group of Merrill Lynch [Trust], USA. Such rights were granted on various dates between 1995 and 2000.The assessee could redeem or encash the ESOPs any time after the lock in period of three y

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