Peninsula Land Ltd. v. DCIT (2022) 193 ITD 366 (Mum.)(Trib.)

S. 35DDA : Amortisation of expenditure-Voluntary retirement scheme-Slump sale-Allowable as deduction. [S. 50B]

Assessee sold one of its division under slump sale and paid VRS payment to workers of said division. Assessee claimed VRS expenditure under section 35DDA. The Assessing Officer denied said claim. On appeal the Tribunal held that section 35DDA would not prevent assessee from claiming deduction with respect to VRS expenditure even in case of slump sale. (AY. 2005-06)