2013 (6) TMI 227

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....d for our consideration : "Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in allowing the expenditure related to the voluntary retirement scheme of Rs. 4,10,90,573 in respect of the Jamshedpur unit and Rs. 1,07,23,833 in respect of the Jammu unit even though such expenditure concerned the closure of the business activities of the assessee in th....

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....e assessee's contention and treated the entire expenditure as capital expenditure. In appeal, the Commissioner of Income-tax (Appeals) also upheld the order of the Assessing Officer and held that the expenditure incurred on the voluntary retirement scheme at the Jamshedpur and Jammu units cannot be allowed as revenue expenditure under section 37 of the Act. On further appeal, the Tribunal allow....

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.... out of these units, the assessee has closed two units during the year for the purpose of relocating its business at Sanaswadi, Pune. In view of this, the Tribunal held that the expenditure paid to the employees of the Jamshedpur and Jammu units for the purpose of the voluntary retirement scheme can only be considered as an expenditure incurred in the course of the business. The incidental expense....