https://www.taxtmi.com/caselaws?id=795819 Expenditure incurred to implement closure of a business undertaking is not deductible under Section 37(1) merely because it shares common management or control with a continuing business. The closure payment transferred the undertaking's assets, liabilities, employees, contracts and obligations for closure, rather than serving the assessee's ongoing business; its disallowance was restored. Foreign exchange fluctuation loss must be determined from actual liabilities on individual import transactions where records are available, not estimated apportionment. As the claimed loss related to spares and consumables and capital-goods fluctuation had been capitalised, the estimated disallowance could not be sustained. en-us Tue, 14 Jul 2026 00:00:00 +0530 Tue, 28 Jul 2026 08:30:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795819 Expenditure incurred to implement closure of a business undertaking is not deductible under Section 37(1) merely because it shares common management or control with a continuing business. The closure payment transferred the undertaking's assets, liabilities, employees, contracts and obligations for closure, rather than serving the assessee's ongoing business; its disallowance was restored. Foreign exchange fluctuation loss must be determined from actual liabilities on individual import transactions where records are available, not estimated apportionment. As the claimed loss related to spares and consumables and capital-goods fluctuation had been capitalised, the estimated disallowance could not be sustained. Case-Laws Income Tax Tue, 14 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795819