Bombay High Court Allows Deduction for Retrenchment Compensation Reimbursed by Assessee to Subsidiary Under Contractual Agreement. The court held that retrenchment compensation paid by the subsidiary and reimbursed by the assessee under a contractual agreement is allowable as business expenditure under Section 37(1) of the Income Tax Act, 1961, as it was incurred for commercial expediency and business reorganization.
26 Aug 2016The case pertains to an Income Tax Reference under Section 256(1) of the Income Tax Act, 1961, for the Assessment Year 1980-81. The assessee, The Wall...
