Payment for VRS to employees prior to Section 35DDA Insertion fully allowed

Foseco India Limited Vs DCIT (ITAT Pune) The issue under consideration is whether the payment made by the company to its employees under the Voluntary Retirement Scheme (VRS) is allowed as deduction? In the present case, the assessee, a company engaged in the business of manufacture and sale of foundry fluxes, foundry chemicals, and pro fax, they paid some amount towards payment on account of Voluntary Retirement Scheme (VRS) relating to employees and filed the return claiming deduction of the said amount. The Assessing Officer, in the assessment completed u/s.143(3), did not allow deduction i...