https://www.taxtmi.com/caselaws?id=15125 Gratuity payable under a labour settlement was treated as a present liability arising on termination of employment and therefore deductible in computing business income. Retrenchment compensation paid during transfer and reorganisation of the manufacturing unit was also held to be revenue expenditure where the manufacturing and trading activities formed a single business with unity of control and management, because the liability arose in the course of reorganising the same business rather than on closure of an independent unit. On that basis, both payments were allowable deductions in computing business income. en-us Thu, 16 Apr 1998 00:00:00 +0530 Mon, 03 Aug 2009 12:00:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15125 Gratuity payable under a labour settlement was treated as a present liability arising on termination of employment and therefore deductible in computing business income. Retrenchment compensation paid during transfer and reorganisation of the manufacturing unit was also held to be revenue expenditure where the manufacturing and trading activities formed a single business with unity of control and management, because the liability arose in the course of reorganising the same business rather than on closure of an independent unit. On that basis, both payments were allowable deductions in computing business income. Case-Laws Income Tax Thu, 16 Apr 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15125