ITAT explains Tax Treatment of ESOP discount (difference between market & issue price)

Issue – Whether discount on issue of Employee Stock Options is allowable as deduction in computing the income under the head profits and gains of business?

Briefly stated the facts of the case are that the assessee is engaged in the manufacture of Enzymes and Pharmaceutical ingredients. It formulated the ESOP 2000. A trust was set up under the name and style of “Biocon India Limited Employees Welfare Trust” for giving effect to the ESOP 2000 and another ESOP 2004 which was launched subsequentl

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