https://www.taxtmi.com/caselaws?id=361009 The Tribunal dismissed the Departmental Appeal, affirming the Ld. CIT(A)'s decision to allow the retrenchment compensation as a deductible business expense under section 37 of the I.T. Act. The closure of the unit was deemed for business purposes, with no personal element involved, and the payment to retired employees was found to be wholly and exclusively for business purposes. The Tribunal held that the provisions of Section 35DDA did not apply as the retrenchment compensation was not under a voluntary retirement scheme, but for legitimate business reasons following the closure of the factory. en-us Wed, 02 May 2018 00:00:00 +0530 Mon, 28 May 2018 07:45:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=361009 The Tribunal dismissed the Departmental Appeal, affirming the Ld. CIT(A)'s decision to allow the retrenchment compensation as a deductible business expense under section 37 of the I.T. Act. The closure of the unit was deemed for business purposes, with no personal element involved, and the payment to retired employees was found to be wholly and exclusively for business purposes. The Tribunal held that the provisions of Section 35DDA did not apply as the retrenchment compensation was not under a voluntary retirement scheme, but for legitimate business reasons following the closure of the factory. Case-Laws Income Tax Wed, 02 May 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=361009