https://www.taxtmi.com/caselaws?id=211204 Retrenchment compensation paid on closure of a hotel business was held to be deductible against the assessee's franchise business because the activities formed one integrated business. The decisive test was unity of control, supported by common management, common business organisation, common administration and a common place of business, rather than similarity in the nature of the activities. Compensation payable under the retrenchment provisions was treated as a mandatory statutory liability and, where incurred for a single commercial undertaking, as allowable business expenditure. The deduction was therefore accepted in favour of the assessee. en-us Wed, 13 Jul 2011 00:00:00 +0530 Tue, 11 Dec 2012 13:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=211204 Retrenchment compensation paid on closure of a hotel business was held to be deductible against the assessee's franchise business because the activities formed one integrated business. The decisive test was unity of control, supported by common management, common business organisation, common administration and a common place of business, rather than similarity in the nature of the activities. Compensation payable under the retrenchment provisions was treated as a mandatory statutory liability and, where incurred for a single commercial undertaking, as allowable business expenditure. The deduction was therefore accepted in favour of the assessee. Case-Laws Income Tax Wed, 13 Jul 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=211204