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/
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/
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