ESOP Discount Is Allowable Business Deduction, Not Contingent Liability: ITAT Mumbai

Advertisement Neo Market Services Private Limited Vs DCIT (ITAT Mumbai) Mumbai ITAT Allows ESOP Deduction; Discounts on Employee Stock Options Are Not Contingent Liabilities The ITAT Mumbai allowed the assessee’s appeal and directed deletion of the disallowance of ESOP expenses claimed as revenue expenditure under Section 37. The Assessing Officer had disallowed the expenditure by treating it as a contingent liability. The Tribunal observed that the issue was squarely covered by the Special Bench decision in Biocon Limited v. DCIT, affirmed by the Karnataka High Court, and followed by the...