https://www.taxtmi.com/caselaws?id=56285 Retrenchment compensation paid after takeover was treated as a revenue deduction because the liability arose only on actual retrenchment, and taking past service into account for computation did not shift the obligation to the vendor. The payment was incurred in the course of the assessee's business and to make retrenchment legally effective under industrial law. Inauguration expenses incurred after business commencement were also allowed because they related to business publicity, employee morale and commercial expediency, and were not shown to be capital in nature. Both claims were therefore deductible. en-us Mon, 08 Aug 1983 00:00:00 +0530 Thu, 02 Dec 2010 17:56:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56285 Retrenchment compensation paid after takeover was treated as a revenue deduction because the liability arose only on actual retrenchment, and taking past service into account for computation did not shift the obligation to the vendor. The payment was incurred in the course of the assessee's business and to make retrenchment legally effective under industrial law. Inauguration expenses incurred after business commencement were also allowed because they related to business publicity, employee morale and commercial expediency, and were not shown to be capital in nature. Both claims were therefore deductible. Case-Laws Income Tax Mon, 08 Aug 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56285