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2008 (11) TMI 340 - HC - Income TaxRevenue Expenditure under section 37 – Voluntary Retirement Scheme – The assessee implemented a voluntary retirement scheme floated by it, it was duly approved by the Commissioner under section 10(10C) and claimed deduction of the entire expenses to the tune of Rs.1,06,57,907, paid by way of terminal benefits in the relevant assessment year. The learned Assessing Officer disallowed the claim and held that it is not an expenditure of the nature described in sections 30 to 36 but it is in the nature of capital expenditure The Assessing officer disallowed the claim but the Tribunal allowed it. In this case Rajasthan High Court-held that the expenditure was clearly allowable as revenue expenditure under section 37(1) of the Act on the grounds of the following judgments (1.)Calcutta High Court, in CIT v. Machinery Manufacturing Corporation Ltd. (2.) CIT v. Simpson and Co. Ltd. (No. 1) (3.)judgment of the Bombay High Court in CIT v. Bhor Industries Ltd.– Decision in favor of assessee – against the revenue
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