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2022 (8) TMI 1234 - HC - Income TaxAllowable revenue expenditure u/s 37(1) - difference between the price at which stock options were offered to employees of the appellant company under ESOP and ESPS and the prevailing market price of the stock on the date of grant of such options - HELD THAT:- As following the judgment of CIT vs. Biocon Ltd. [2020 (11) TMI 779 - KARNATAKA HIGH COURT] the question of law is decided in favour of the assessee and it is held that the Income Tax Appellate Tribunal erred in law in holding that the difference between the price at which stock options were offered to employees of the appellant company under ESOP and ESPS and the prevailing market price of the stock on the date of grant of such options was not allowable revenue expenditure under Section 37(1) of the Income Tax Act, 1961. Accordingly, the impugned judgment of the Tribunal is set aside.
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