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employee stock options

2 articlesLatest May 2026
ESOP Discount Is Revenue Expenditure Under Section 37(1) | ITAT Delhi Affirms Binding Precedent of Delhi HC in Lemon Tree & NDTV Cases
Case Law Analysis
|Income Tax Appellate Tribunal

ESOP Discount Is Revenue Expenditure Under Section 37(1) | ITAT Delhi Affirms Binding Precedent of Delhi HC in Lemon Tree & NDTV Cases

The ITAT Delhi has ruled that the discount on shares issued under Employee Stock Option Plans qualifies as a revenue expenditure deductible under Section 37(1) of the Income Tax Act, aligning with Delhi High Court precedents in Lemon Tree Hotels and NDTV. This clarifies that such accounting entries-though non-cash-are legitimate business costs tied to employee compensation, not capital infusions, impacting all companies offering ESOPs in India.

Condonation of Delay in Tax Appeal | Reliance on Consultant Without Documentary Proof Constitutes Sufficient Cause : ITAT Bangalore
Case Law Analysis
|Income Tax Appellate Tribunal

Condonation of Delay in Tax Appeal | Reliance on Consultant Without Documentary Proof Constitutes Sufficient Cause : ITAT Bangalore

ITAT Bangalore condoned a 74-day delay in filing an income tax appeal because the assessee’s failure to receive the assessment order stemmed from a consultant’s negligence, even in the absence of formal engagement documents. This ruling affirms that reasonable reliance on professional advisors, when genuine and not negligent, qualifies as sufficient cause under Section 250(6) of the Income Tax Act - protecting taxpayers who act in good faith despite procedural gaps.

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