2018 (9) TMI 603

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..... been reckoned to be a capital expenditure. The second ground is that when a particular unit was sold and the obligation in respect of such unit was taken over by the purchaser for a period of two months prior to the actual date of transfer, the expenses incurred by the assessee in respect of such unit for the relevant period had to be disregarded. As to the issue of restructuring, the Revenue says that the Appellate Tribunal has decided the matter on the strength of a judgment of the Punjab and Haryana High Court and without appreciating the contents of the judgment. Indeed, it does not appear from the tribunal's order that it refers to the ratio decidendi in any judgment or even attempts to undertake an exercise to discern the same from .....

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..... change in law under which the deduction claimed for the money paid on account of VRS or severance has now to be spread over five years; which implies that it has to be treated as a revenue expenditure, but only that 20 per cent of the total expenditure on such head will be deducted from the income in a particular year and the whole amount expended has to be made up over five years. It is the further case of the assessee that when one or more of the several units of an assessee is shut down or sold, it does not imply that the services of the common management or managerial staff are also terminated. The assessee says that it is difficult to sometimes put the matter in a straight-jacket which is why even the Supreme Court has said that some .....

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..... though the actual transfer of the business to NPIL was on March 27, 2002. In considering the views of the assessing officer and of the Commissioner (Appeals), the Appellate Tribunal referred to the test of determining whether the several businesses of an entity carrying on various businesses could be segregated and regarded as different units or had to be taken as a whole. The Appellate Tribunal referred to the judgment of the Supreme Court rendered in similar circumstances and was satisfied that since the whole of the expenses of the assessee had been indicated rather than the expenses incurred in respect of the particular unit, the point sought to be raised by the Revenue was of no significance. No real question of law arises on such aspe .....

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