Monday, March 28, 2011

DT Recent Case Laws - CIT V.DCM Ltd 2010 (Del.)

CIT V.DCM Ltd 2010(Del.)
Assessee had 4units of textile business.1UNIT(not whole business)closed down&borrowed money to pay retrenchment compensation to employees.
Such retrenchment compensation&interest on borrowed money wil b treated as REVENUE exp.
but if closure of ENTIRE BUSINESS, then it wud b a CAPITAL exp

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