https://www.taxtmi.com/caselaws?id=369341 Retrenchment compensation paid after a business transfer was treated as non-deductible because the assessee had already sold the undertaking and the liability was not a business outgoing of the continuing business. Renovation, repairs and maintenance expenses incurred to facilitate the sale were regarded as deductible, as they were connected with the disposal transaction and not disallowed merely because the business had been sold. Advertisement and sales promotion expenses incurred after the transfer were not allowable, since post-sale expenditure could not be attributed to the assessee's business. The note distinguishes expenses linked to the sale process from expenses incurred after the business has ceased with the assessee. en-us Mon, 22 Oct 2018 00:00:00 +0530 Wed, 24 Oct 2018 18:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=369341 Retrenchment compensation paid after a business transfer was treated as non-deductible because the assessee had already sold the undertaking and the liability was not a business outgoing of the continuing business. Renovation, repairs and maintenance expenses incurred to facilitate the sale were regarded as deductible, as they were connected with the disposal transaction and not disallowed merely because the business had been sold. Advertisement and sales promotion expenses incurred after the transfer were not allowable, since post-sale expenditure could not be attributed to the assessee's business. The note distinguishes expenses linked to the sale process from expenses incurred after the business has ceased with the assessee. Case-Laws Income Tax Mon, 22 Oct 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=369341