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TMI Blog2019 (2) TMI 1145X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its. It was the business expediency which forced the assessee to close its unit at Kalamassery. 3. The learned Senior Counsel, Government of India (Taxes) would argue that there was no determination of facts as found in K.Ravindranathan Nair v. Commissioner of Income Tax [(2001) 247 ITR178 (SC)]. It is also found by the Assessing Officer that the retrenchment compensation was not paid in the relevant previous year. Since none appears for the appellant, we appointed Sri. Ajay V Anand as Amicus Curiae. Sri Ajay would contend that the assessee has been running three units, all manufacturing chemicals. The Tribunal has specifically referred to the same in its order and has found unity of management in which circumstances, there is no question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her 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. 6. K.Ravindranathan Nair was a case in which the assessee had ten units carrying on cashew processing which constituted a single business. Due to huge loss accruing,a lock out of four units and later closure of the same was effected, by reason of which there was payment of retrenchment compensation. Again the question ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction, inter-lacing and inter-dependence is a fait accompli. The conclusion arrived at by the learned Tribunal on the facts established does not seem to conform to the principles of law as discussed above. On the materials disclosed, it is clear that the business was one and the same." 8. In the present case also, we see that the 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 an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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