https://www.taxtmi.com/caselaws?id=62217 Retrenchment compensation paid under a sale agreement for a cinema theatre was treated as expenditure wholly and exclusively incurred in connection with the transfer because closure of the business, retrenchment of employees, and handing over of the property free from encumbrances were contractual conditions precedent to sale. The Tribunal held that the payment had a direct nexus with effectuating the transfer and was not an independent business outgo, so it was deductible in computing capital gains under section 48(1). On that basis, revision under section 263 was not justified. en-us Wed, 24 Jun 1992 00:00:00 +0530 Tue, 18 Jan 2011 15:59:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62217 Retrenchment compensation paid under a sale agreement for a cinema theatre was treated as expenditure wholly and exclusively incurred in connection with the transfer because closure of the business, retrenchment of employees, and handing over of the property free from encumbrances were contractual conditions precedent to sale. The Tribunal held that the payment had a direct nexus with effectuating the transfer and was not an independent business outgo, so it was deductible in computing capital gains under section 48(1). On that basis, revision under section 263 was not justified. Case-Laws Income Tax Wed, 24 Jun 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62217