https://www.taxtmi.com/caselaws?id=27568 Retrenchment compensation paid for the Kerala processing units was not deductible as a revenue outgoing under section 37 of the Income-tax Act. Deductibility turned on whether the assessee's ten units formed one integrated business or separate businesses; on the facts, the transfer of two units and surrender of the other Kerala units showed that the liability arose after cessation or transfer of those units, not in the course of the continuing business. The agreements and settlement documents linked the liability to the transferred or closed units, and the ventures were not shown to be interlaced, interdependent, or under a single unity of control. The claim was therefore disallowed despite the plea of commercial expediency. en-us Mon, 30 Jul 1984 00:00:00 +0530 Sat, 13 Feb 2010 16:04:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27568 Retrenchment compensation paid for the Kerala processing units was not deductible as a revenue outgoing under section 37 of the Income-tax Act. Deductibility turned on whether the assessee's ten units formed one integrated business or separate businesses; on the facts, the transfer of two units and surrender of the other Kerala units showed that the liability arose after cessation or transfer of those units, not in the course of the continuing business. The agreements and settlement documents linked the liability to the transferred or closed units, and the ventures were not shown to be interlaced, interdependent, or under a single unity of control. The claim was therefore disallowed despite the plea of commercial expediency. Case-Laws Income Tax Mon, 30 Jul 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27568