https://www.taxtmi.com/caselaws?id=10490 Retrenchment compensation was not deductible where no actual retrenchment or closure occurred, because the liability arises only on termination of employment or transfer of the undertaking; a mere expectation of licence non-renewal did not create a present obligation. Bottles used in the liquor business were treated as plant, and depreciation was allowable even though the Government claimed ultimate ownership, since absolute ownership was not necessary for the allowance. Surplus in the bottle deposit account was not taxable income because the amounts were refundable deposits held under an obligation to return them. en-us Tue, 08 Feb 2005 00:00:00 +0530 Thu, 16 Jul 2009 17:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10490 Retrenchment compensation was not deductible where no actual retrenchment or closure occurred, because the liability arises only on termination of employment or transfer of the undertaking; a mere expectation of licence non-renewal did not create a present obligation. Bottles used in the liquor business were treated as plant, and depreciation was allowable even though the Government claimed ultimate ownership, since absolute ownership was not necessary for the allowance. Surplus in the bottle deposit account was not taxable income because the amounts were refundable deposits held under an obligation to return them. Case-Laws Income Tax Tue, 08 Feb 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10490