PRADEEP PICTURES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) ON an application made by the assessee under Section 256(2) of the I.T. Act, 1961, hereinafter referred to as "the Act", this court had directed the Tribunal to state the case and refer the following question of law to this court for its opinion :

(2.) THE Tribunal has now forwarded the statement of the case and referred the aforesaid question of law to this court for its opinion.

(3.) IT is now well settled that expenditure incurred by the management in paying retrenchment compensation, as provided by the Industrial Disputes Act, is business expenditure (see Sassoon f. David and Co. Ltd. v. CIT [1979] 118 ITR 261 (SC)).