Held that loss on employee stock option plan, provision for gratuity, provision for approved gratuity fund are held to be allowable as deduction. Advance to employees welfare fund are made from internal accruals, interest paid not disallowable. (AY. 2012-13, 2014-15)
Bharat Financial Inclusion Ltd. v. Dy.CIT (2021) 87 ITR 80 (SN) (Hyd.)(Trib.)
S. 37(1) : Business expenditure-Employees’ Stock option plan-Loss on account of stock options-Allowable as deduction-Provision for gratuity-Allowable as deduction-Provision for approved gratuity fund-Allowable as deduction-Advance to employees welfare fund-Interest not disallowable. [S. 36(1)(iii), 40A(7), 43B]