https://www.taxtmi.com/caselaws?id=38881 Compensation and notice pay paid to workmen on closure of the business were held not deductible under section 37(1) or section 28(i) of the Income-tax Act, 1961. Liability under section 25-FFF of the Industrial Disputes Act, 1947 arises only on closure of the undertaking, so the payment was treated as an outgoing occasioned by shutting down the business rather than an expenditure incurred in carrying it on. Quantification of the amount by agreement before actual closure did not make it an accrued business liability for the accounting year. The deduction was therefore inadmissible. en-us Mon, 11 Oct 1976 00:00:00 +0530 Sat, 10 Apr 2010 11:29:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38881 Compensation and notice pay paid to workmen on closure of the business were held not deductible under section 37(1) or section 28(i) of the Income-tax Act, 1961. Liability under section 25-FFF of the Industrial Disputes Act, 1947 arises only on closure of the undertaking, so the payment was treated as an outgoing occasioned by shutting down the business rather than an expenditure incurred in carrying it on. Quantification of the amount by agreement before actual closure did not make it an accrued business liability for the accounting year. The deduction was therefore inadmissible. Case-Laws Income Tax Mon, 11 Oct 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38881