UNITED MERCANTILE Co. (PVT.) LTD. vs COMMISSIONER OF INCOME-TAX, — 1972 PTD 258

Citation: 1972 PTD 258

Court: Kerala High Court

Year: 1971

Decision Date: 1971-12-31

Parties: UNITED MERCANTILE Co. (PVT.) LTD. vs COMMISSIONER OF INCOME-TAX, JUDGMENT

Headnotes

Case cited as 1972 PTD 258

Judgment Text

Court Name: Kerala High Court Judge(s): M. U. Isaac, P. Narayan Pillai Title:UNITED MERCANTILE Co. (PVT.) LTD. vs COMMISSIONER OF INCOME-TAX, JUDGMENT Reported As: 1972 PTD 258 Result: company transferred Judgment JUDGMENT ISAAC, J.---This is a reference by the Madras Bench of the income-tax Appellate Tribunal under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as the 1961-Act), on the application of the assessee. The question referred is: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the amount of Rs.18,578 transferred by the assessee to the Provident Fund Commissioner under the provisions of the Em--ployee's Provident Funds Act, 1952, was a capital expenditure within the meaning of rule 14(1) of Part A of Schedule IV of the Income-tax Act, 1961, and was, therefore, not a permissible deduction under section 37(1) of the Act." The Appellate Tribunal has furnished a very clear statement of the case ; and it is enough if we quote paragraphs 2 and 3 of that statement for the facts of the case: "The assessee is a private limited company carrying on business in printing and paper. The assessee-company was maintining a private provident fund account for its employees which was, however, not a recognised fund. In the accounting year ended 31st December 1961, relevant to the assessm ent year 1962-6'3, the company came under the purview of the Employees' Provident Funds Act, 1952, and the…

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