1991 (7) TMI 25

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....oyees should be allowed as a deduction ? (common to all the years). 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the sum of Rs. 12,171, being the arrears of urban land tax, is an admissible expenditure for the assessment year 1973-74 even though the tax related to the earlier years ? 3. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the sum of Rs. 2,481, being the notice pay to workers voluntarily retired should be allowed as deduction for the assessment year 1973-74 ? " (only in T. C. No. 1003 of 1980). In so far as the first question is concerned, learned counsel for the Revenue now represents that he h....

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....anding orders and that the expenditure incurred by the assessee was incurred as part of business expediency and hence allowable as claimed by the assessee. That is how the third question referred to above has come up before us. There is no dispute that, during the accounting period relevant to the assessment year 1973-74, the assessee had sustained losses and had wanted, by reducing the staff, to bring a reorganisation of the branch, saving on the wage bill as well. Under the standing orders, provision is made for a voluntary retirement scheme and it is stated that, in all such cases of voluntary retirement, the quantum of benefits will be as for retrenchment as per the Industrial Disputes Act. Though voluntary retirement, under the prov....