Stock Options are deductible revenue expenditure

In Religare Commodities Ltd vs. ACIT, ITAT Delhi held that Stock Options (appreciation rights) are intended to motive employees and so the expenditure thereon is a deductible revenue expenditure. The discount (difference between market price and vesting price) is allowable upon vesting subject to reversal if the options lapse.

Article referred: http://itatonline.org/archives/religare-commodities-ltd-vs-acit-itat-delhi-s-371-stock-options-appreciation-rights-are-intended-to-motive-employees-and-so-the-expenditure-thereon-is-a-deductible-revenue-expenditure-the-disco/