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TMI Blog2018 (10) TMI 1307X X X X Extracts X X X X X X X X Extracts X X X X ..... elf was sold, there was no reason for incurring such expenses. The assessee had taken a specific contention that the renovation was done with a view to sell the business to the partnership firm. The Assessing Officer took the view that if the renovation was done after the decision to sell the business was taken, then necessarily it is not an expenditure incurred for the business of the assessee. We do not think such a view can be taken especially since the assessee had a case that he expended the amounts for the purpose of sale, in which sale he had also declared long term capital gains coming to ₹ 75 lakhs. In such circumstances, the renovation expenses and expenses for repairs and maintenance have to be allowed as an expenditure und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (Rs.5,64,582) and Sales promotion expenses (Rs.5,48,540) since the assessee sold away his proprietory business concern to the firm; when actually the business was carried on by the firm? ( ii) Had not the Tribunal erred in not appreciating the fact that the retrenchment compensation was disallowed on the basis of the decision of Supreme Court in Gemini Cashew Sales Corporation - 65 ITR 643 (SC)? 3. The assessee had claimed expenses under Section 37 of the Income Tax Act, 1961 [for brevity IT Act ] on five specific heads - retrenchment compensation, renovation expenses, repairs and maintenance expenses, advertisement expenses and sales promotion expenses. The assessee had retail business in Home Appliances, which were sol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been continued uninterruptedly. 5. In the present case, the assessee had taken a contention that the assessee had continued the business. In fact, it was the partnership which had continued the business. In such circumstance, there can be no claim of retrenchment compensation by the assessee who had sold the establishments and business was also continued by the transferee firm. 6. With respect to renovation expenses and repairs and maintenance, the Assessing Officer found that since the business itself was sold, there was no reason for incurring such expenses. The assessee had taken a specific contention that the renovation was done with a view to sell the business to the partnership firm. The Assessing Officer took the view that if ..... X X X X Extracts X X X X X X X X Extracts X X X X
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