Deduction on ESOP

In a landmark decision by ITAT that discount on ESOP(employee stock options) will be treated as employee cost and should be allowed as deduction from the business income during the vesting period of the ESOP. Earlier the discount was treat as the capital expense by the tax authorities. But now it will be treated as business expense.
Ex : market price of share is Rs 100. Company issues the stock to its employee at Rs 60. So Rs 40 is discount. Vesting period is 2 years. So now Rs 20(40/2) will allowed as expense for 2 years.