https://www.taxtmi.com/caselaws?id=22003 Retrenchment compensation payable when a business is closed is not expenditure laid out wholly and exclusively for carrying on that business. The liability arises because the undertaking is brought to an end, not because it is being operated in the ordinary course. Applying the settled income-tax principle that only business expenditure incurred for carrying on the business is deductible, the deduction was disallowed and the issue was decided against the assessee. en-us Thu, 25 Jul 1991 00:00:00 +0530 Sat, 05 Dec 2009 13:40:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22003 Retrenchment compensation payable when a business is closed is not expenditure laid out wholly and exclusively for carrying on that business. The liability arises because the undertaking is brought to an end, not because it is being operated in the ordinary course. Applying the settled income-tax principle that only business expenditure incurred for carrying on the business is deductible, the deduction was disallowed and the issue was decided against the assessee. Case-Laws Income Tax Thu, 25 Jul 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22003