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2014 (5) TMI 893 - HC - Income TaxAllowability of deduction of payment on retrenchment of workmen – revenue or capital expenditure - Held that:- There is as such dependable evidence to show that the business of the assessee was continuing – Following C.I.T. Vs. Assam Oil Co. Ltd. [1985 (2) TMI 29 - CALCUTTA High Court] - the assessee’s business in which the disputed payments were made did not come to a closure and that the assessee made such payments in order to effect economy and rationalisation of its personnel - No asset of enduring nature came into existence by reason of the payments though benefits accrued to the assessee thereunder which would continue not only for one year but in future years - But this benefit cannot be related to any asset as such - the interest paid by the assesee for the purpose of borrowing money for payment to the workers, would also amount to a business expenditure – Decided against Revenue.
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