Employee stock option expenditure deductible, AO must follow HC and ITAT precedents.

The Income Tax Appellate Tribunal (ITAT) approved the deduction claim for Employee Stock Option Plan (ESOP) expenditure by the assessee, instructing the Assessing Officer (AO) to adhere to precedents set by the Karnataka High Court and ITAT Special Bench. The ITAT criticized the AO for disregarding these judicial precedents and failing to exercise judicial discipline. It also admonished lower authorities for dismissing the claim to prolong the issue, despite a coordinate Bench's directive for re-examination while the ESOP matter awaited a Supreme Court decision. .....

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