https://www.taxtmi.com/caselaws?id=36567 Retrenchment compensation paid on termination of employees ahead of takeover was treated as an expense linked to closure of the undertaking, not as business expenditure incurred in the ordinary course, so it was not deductible. The takeover of the electricity undertaking under the statutory purchase scheme was treated as a sale in substance for section 41(2) purposes, even without a sale deed or registration. The additional amount payable over market value under the governing licence and valuation framework was treated as part of the purchase price, not as a separate ex gratia sum, and therefore formed part of the consideration for section 41(2) computation. en-us Tue, 07 Nov 1978 00:00:00 +0530 Tue, 23 Mar 2010 12:01:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36567 Retrenchment compensation paid on termination of employees ahead of takeover was treated as an expense linked to closure of the undertaking, not as business expenditure incurred in the ordinary course, so it was not deductible. The takeover of the electricity undertaking under the statutory purchase scheme was treated as a sale in substance for section 41(2) purposes, even without a sale deed or registration. The additional amount payable over market value under the governing licence and valuation framework was treated as part of the purchase price, not as a separate ex gratia sum, and therefore formed part of the consideration for section 41(2) computation. Case-Laws Income Tax Tue, 07 Nov 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36567