ITAT Approves ESOP Expenditure Deduction, Criticizes Assessing Officer for Ignoring Precedents and Judicial Discipline.

The ITAT allowed the assessee's claim for deduction of ESOP expenditure, directing the AO to follow the binding precedents of the Karnataka HC and ITAT Special Bench on this issue. It held that the AO violated judicial discipline by rejecting the claim without considering these higher judicial precedents, disrespecting principles of judicial precedents. The ITAT reprimanded the lower authorities for grossly rejecting the assessee's claim to keep the issue alive despite the coordinate Bench remanding it for fresh examination, when the ESOP matter was pending before the Supreme Court. .....

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