Section 37(1) ESOP Discount Deduction Allowed as Business Expenditure: Delhi HC

Advertisement PVR Ltd. Vs CIT (Delhi High Court) The Delhi High Court considered whether the Income Tax Appellate Tribunal had erred in holding that the difference between the price at which stock options were offered to employees under the appellant’s ESOP and ESPS schemes and the prevailing market price on the date of grant was not allowable as revenue expenditure under Section 37(1) of the Income Tax Act, 1961. During the pendency of the appeal, the Karnataka High Court in Commissioner of Income Tax vs. Biocon Ltd. upheld the decision of the Special Bench of the Tribunal on the sam...