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2017 (10) TMI 1531 - AT - Income TaxCapital loss OR allowable business deduction - difference between purchase price of Stock Appreciation Right (“SAR‟) and the sale price of such SAR at the time of exercise by the employees - Whether above differential amount was in the nature of employee compensation allowable as deduction under section 37(1) ? - HELD THAT:- With respect to one of the group companies, Religare commodities Ltd. [2017 (1) TMI 783 - ITAT DELHI] identical issue arose before the coordinate bench, which decided this issue held that the issue is also squarely covered by the decision of the Hon‟ble Madras High Court [2012 (7) TMI 696 - MADRAS HIGH COURT] wherein it has been held that the above expenditure on account of employee stock option scheme is an ascertained liability for deduction and further also held that the expenses debited is cost of employee stock option plan in the profit and loss account is an allowable expenditure. The Ld. departmental representative also could not point out any other judicial precedent against the above judicial precedents cited by the Ld. authorized representative. - Decided in favour of assessee.
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