Expenditure incurred in giving VRS to employees held revenue expenditure, HC.
Nov. 04, 2015
Assessee manufactured electrical equipment. It gave option to employees of VRS. In VRS (Scheme), appellant incurred expenditure & claimed it as revenue expenditure. AO allowed it. CIT & Tribunal reversed it. HC held, CIT as per circular: ex gratia payment made for gaining benefit of VRS to be treated as capital expenditure reopened assessment u/s263, circular in conflict with HC view which binds AO. Thus, AO held right, ITAT decision set aside.-010…