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2023 (4) TMI 793 - AT - Income TaxDisallowance of ESOP expenses - allowable revenue expenses u/s 37 or not? - AR submitted that ESOP form parts of the employee’s compensation as ‘perquisite - whether ESOP expenses is not notional/ contingent in nature and allowable under section 37 ? - HELD THAT:- As decided in Novo Nordisk India P. Ltd. case [2013 (11) TMI 218 - ITAT BANGALORE] the expenditure in question was wholly and exclusively for the purpose of the business of the assessee and had to be allowed as deduction as a revenue expenditure. Thus we hold that the expenditure towards ESOP is eligible for deduction u/s 37 - Appeal by the assessee is allowed.
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