https://www.taxtmi.com/caselaws?id=61056 Retrenchment and terminal benefit payments made on closure of three units were treated as potentially allowable under section 37(1) because the closure concerned only part of a business operating under common management, common finances and unity of control. The compensation payable under the Industrial Disputes Act was regarded as a legal liability, and the expenditure was viewed as prima facie incurred to arrest continuing losses and reduce the wage bill. However, the individual components of the payments were not examined in detail, and the effect of Government contribution toward the liability also needed reconsideration, so the matter was remitted for fresh examination. en-us Fri, 28 Jan 2000 00:00:00 +0530 Mon, 10 Jan 2011 16:39:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=61056 Retrenchment and terminal benefit payments made on closure of three units were treated as potentially allowable under section 37(1) because the closure concerned only part of a business operating under common management, common finances and unity of control. The compensation payable under the Industrial Disputes Act was regarded as a legal liability, and the expenditure was viewed as prima facie incurred to arrest continuing losses and reduce the wage bill. However, the individual components of the payments were not examined in detail, and the effect of Government contribution toward the liability also needed reconsideration, so the matter was remitted for fresh examination. Case-Laws Income Tax Fri, 28 Jan 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=61056