Start free trial
ThynkTax /Tax Reference /Case Laws /Zomato - ESOP cost deductibility

Zomato - ESOP cost deductibility

Income Tax Appellate Tribunal·2023·ITR
Facts

Indian listed company's ESOP cost (difference between FMV and exercise price).

Issue

Deductibility as business expense.

Held

ESOP cost is allowable as business expense in the year of vesting/exercise; subject to ascertainment of FMV.

Ratio

ESOP cost is a genuine business expense; not contingent or fictitious.

Related judgments on the same sections

Supreme Court of India · 2019
Reliance Industries - capital expenditure

Facts: Reliance incurred substantial expenditure on technology acquisition and capacity enhancement. Issue: Capital vs revenue expenditure c…

Supreme Court of India · 1985
McDowell & Co.

Facts: Manipulation of excise duty payment timing to claim deductions. Issue: Whether tax planning that exploits literal interpretation but …

Income Tax Appellate Tribunal · 2024
CRED Foundation - CSR expenditure

Facts: CSR expenditure under Companies Act Section 135. Issue: Deductibility under Section 37. Held: Section 37 Explanation 2 (inserted Fina…

Use via API

Free, public REST. Fetch this judgment programmatically.

API docs 
curl https://api.thynktax.com/v1/tax-law/case-laws?q=Zomato%20-%20ESOP%20cost%20deductibility