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2006 (2) TMI 82 - KARNATAKA HIGH COURTSection 37 - "Whether, Tribunal is right in law in upholding the order of the CIT (Appeals) allowing the claim of the assessee for deduction of expenditure including retrenchment compensation paid to the employees of the manufacturing unit?" - assessee was carrying on two lines of business, i.e., manufacturing and trading, and he has stopped the manufacturing activity temporarily as a consequence of which he has retrenched all the employees who were employed in the manufacturing unit by paying retrenchment compensation. The said manufacturing unit which was a capital asset of the business was leased out to a lessee carrying on the very same business out of which he is deriving income by way of rent. The said rental income is income from business. The assessee has not closed its business activity. It is being continued even after closure of the manufacturing activity - question of law is answered in the affirmative, in favour of the assessee and against the Revenue
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