IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 13TH AUGUST 2009 / 22ND SRAVANA 1931 ITA.No. 1169 of 2009() ---------------------- ITA.190/COCH/2007 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT: ------------------------------ THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): --------------- M/S.C P LONAPPAN & SONS, HIGH ROAD, TRICHUR. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 13/08/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & C. K. ABDUL REHIM, JJ. -------------------------------------------- I.T.A. No.1169 OF 2009 -------------------------------------------- Dated this the 13th day of August, 2009 JUDGMENT Ramachandran Nair,J. The question raised is about the assessee's entitlement towards deduction of Rs. 17-odd lakhs paid to employees under Voluntary Retirement Scheme. Even though senior standing counsel appearing for the revenue submitted that the assessee has closed the business and therefore deduction by way of terminal benefits to the employees is not allowable deduction, we notice from the Tribunal's order that the purpose of payment was to release some of the employees from service for reorienting the business to suit the changed economic scenario. It is clear from the Tribunal's finding that the business is continuing after restructure. So much so we find that the Tribunal rightly allowed the appeal. This appeal is consequently dismissed. However, if facts assumed by the Tribunal based on which decision is rendered are incorrect, it is for the department to verify whether the assessee has 2 closed business in that year and if required to move the Tribunal for rectification of the orders. (C.N.RAMACHANDRAN NAIR) Judge. (C. K. ABDUL REHIM) Judge. kk 3