Held, that employees’ stock option expenses were deductible under section 37 of the Act. However, the Assessing Officer was to verify whether the amount had been subject to tax deduction at source under section 192 or section 195 as claimed by the assessee. Matter remanded. (AY. 2016-17)
EIT Services India Pvt. Ltd. v. Dy CIT (2022) 100 ITR 490 (Bang.)(Trib.)
S. 37(1) : Business expenditure-Employees’ Stock Option Scheme-Deducted tax at source in respect of share-based compensation under taxed in hands of employees as perquisite-Cross-charge expenses-Allowable as deduction-Assessing Officer was directed to verify whether amount subject to tax deduction at source-Matter Remanded. [S. 15, 17(1), 40(a)(i), 192, 195]