https://www.taxtmi.com/caselaws?id=28453 On transfer of an undertaking, section 25FF of the Industrial Disputes Act does not create retrenchment-compensation liability in the transferor where employees continue in service without interruption, retain no less favourable conditions, and the transferee assumes the compensation obligation on retrenchment based on continuous service. In that situation, the liability does not accrue to the transferor on the transfer date, and a book provision for such compensation is not an ascertained liability deductible in the relevant accounting year. The provision is therefore not allowable merely because it is recorded in the accounts. en-us Wed, 27 Apr 1983 00:00:00 +0530 Mon, 22 Feb 2010 17:20:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28453 On transfer of an undertaking, section 25FF of the Industrial Disputes Act does not create retrenchment-compensation liability in the transferor where employees continue in service without interruption, retain no less favourable conditions, and the transferee assumes the compensation obligation on retrenchment based on continuous service. In that situation, the liability does not accrue to the transferor on the transfer date, and a book provision for such compensation is not an ascertained liability deductible in the relevant accounting year. The provision is therefore not allowable merely because it is recorded in the accounts. Case-Laws Income Tax Wed, 27 Apr 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28453