https://www.taxtmi.com/caselaws?id=369341 Business expenditure following transfer of an undertaking is not deductible where it relates to liabilities or activities of a business no longer carried on by the transferor. Retrenchment compensation paid after the transfer was disallowed because the transferee continued the business and the former owner could not treat the payment as its business outgoing. Advertisement and sales-promotion expenditure incurred after the sale was likewise disallowed. Renovation, repairs and maintenance expenditure incurred to facilitate the sale was treated as deductible business expenditure because of its direct connection with effectuating the disposal transaction. The appeal therefore succeeded partly, with only the sale-facilitation expenditure allowed. 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 Business expenditure following transfer of an undertaking is not deductible where it relates to liabilities or activities of a business no longer carried on by the transferor. Retrenchment compensation paid after the transfer was disallowed because the transferee continued the business and the former owner could not treat the payment as its business outgoing. Advertisement and sales-promotion expenditure incurred after the sale was likewise disallowed. Renovation, repairs and maintenance expenditure incurred to facilitate the sale was treated as deductible business expenditure because of its direct connection with effectuating the disposal transaction. The appeal therefore succeeded partly, with only the sale-facilitation expenditure allowed. Case-Laws Income Tax Mon, 22 Oct 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=369341