https://www.taxtmi.com/caselaws?id=28633 Notice pay and retrenchment compensation paid on closure of a printing business were not allowable as business expenditure under the Income-tax Act, 1961. The payments arose because the business was being wound up, so they were not laid out wholly and exclusively for carrying on the business. Although the liability under section 25FFF of the Industrial Disputes Act, 1947 was statutory and absolute on closure, it remained a closure-related cost rather than an operating business expense. The Calcutta HC therefore held that compensation paid on closure is not deductible under sections 28 or 37, and the deduction claim failed. en-us Mon, 19 Jul 1982 00:00:00 +0530 Wed, 24 Feb 2010 14:57:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28633 Notice pay and retrenchment compensation paid on closure of a printing business were not allowable as business expenditure under the Income-tax Act, 1961. The payments arose because the business was being wound up, so they were not laid out wholly and exclusively for carrying on the business. Although the liability under section 25FFF of the Industrial Disputes Act, 1947 was statutory and absolute on closure, it remained a closure-related cost rather than an operating business expense. The Calcutta HC therefore held that compensation paid on closure is not deductible under sections 28 or 37, and the deduction claim failed. Case-Laws Income Tax Mon, 19 Jul 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28633