1978 (10) TMI 28

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..... t was delivered by SATISH CHANDRA C.J.-- The question of law for our consideration 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 .....

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..... on, it could not fall within the expression expenditure laid out or expended 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 Commission .....

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