Compensation for voluntary retirement is revenue expenditure, not capital: Bombay HC

The Bombay HC dismissed the appeal, affirming that compensation for voluntary retirement is revenue expenditure under Section 37(1) of the Income Tax Act and not capital in nature, following SC precedent.

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The Bombay High Court dismissed the appeal regarding the treatment of compensation paid for voluntary retirement scheme as capital expenditure. The court referred to a Supreme Court judgment stating that such expenditure is allowable under Section 37(1) of the Income Tax Act and is not of a capital nature.

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