1978 (10) TMI 28

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... eration is whether retrenchment compensation paid by a business firm on the closure of its business is an admissible deduction under s. 37 of the I.T. Act. The Tribunal upheld the case of the revenue and repelled the claim of the assessee. The Supreme Court in CIT v. Gemini Cashew Sales Corporation [1967] 65 ITR 643, held that retrenchment compensation paid to an employee by the person to whom th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... wholly and exclusively for the purpose of the business. This authority is directly in point. A case of closure is identical to that of transfer of business. In view of this Supreme Court decision, we answer the question referred to us in the affirmative, in favour of the department and against the assessee. The Commissioner will be entitled to costs which are assessed at Rs. 200.
Case laws, D .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X