#ITAT 2026

ITAT Delhi held that the discount on employee stock options is a deductible expense under Section 37(1) of the Income Tax Act, treating it as a composite expense under Section 57. Companies can now claim the ESOP discount against taxable income, reducing tax outgo. This benefits firms that grant ESOPs.

ITAT Delhi allowed Section 80G deduction for CSR donations to registered entities, ruling that the Section 37(1) bar on deducting CSR spend as business expense does not preclude a separate charitable deduction. The bench followed multiple coordinate rulings to restore double tax relief for companies routing mandatory CSR contributions through eligible donees.