Held, that the expense was an ascertainable liability since the employees incurred the obligation over the distinct period, notwithstanding the fact that the exact amount was quantified at the time of exercising the options. Thus, the employees’ stock option plan expenses were to be allowed. (AY. 2003-04,2006-07 to 2008-09)
Jindal Steel and Power Ltd. v. Add. CIT (2022)97 ITR 516 (Delhi) (Trib)
S. 37(1) : Business expenditure-Employee’s stock option plan-Option to purchase shares after completion of vesting period at a lesser price than the market value-Ascertainable liability-Allowable as deduction [S. 145]