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2019 (2) TMI 1145 - HC - Income TaxDeduction u/s 35DDA - Retrenchment compensation paid on the closure of the assessee's manufacturing unit in Kalamassery - one unit out of three closed down - assessee did not make any payment of retrenchment compensation during the previous year relevant to the assessment year 2004-05 - HELD THAT:- Tribunal has examined the facts and found that the units at Mettur, Tuticorin and Kalamassery were all dealing in chemicals and the Kalamassery Unit was the largest unit which however, was incurring huge loss. It was hence the assessee decided to close down the Kalamassery Unit so as to facilitate the profitable carrying on of the other two units, situated in Mettur and Tuticorin. The retrenchment compensation provided for was as per the agreement with the labour unions entered into in the relevant previous year and as such it becomes an ascertained liability accruing in the relevant previous year. The payment made in the subsequent years was only for reason of generation of funds by sale of assets being occasioned later to the relevant previous year. Tribunal had found unity of control and management and it is not as if different lines of businesses were carried on in the three units. All the three units were engaged in manufacturing of chemicals and hence the three units were found to be carried on under the very same management as a single business. We are of the opinion that there is no substantial question of law arising from the order of the Tribunal and hence the appeal is rejected. - Decided against revenue
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