2001 (12) TMI 10 - HC - Income Tax

Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in holding that the liability of the assessee under the Employees Provident Fund Act had accrued to the assessee-company during the previous year and the assessee would be entitled to a deduction of Rs. 15,53,124? - In view of the Supreme Court s decision in Kedarnath Jute Manufacturing Co. Ltd. v. CIT the deduction has to be allowed and hence the question is answered in favour of the assessee and against the Revenue.

Summary

The High Court of Madras ruled in favor of the assessee company in a case regarding the liability under the Employees Provident Fund Act for the assessment year 1980-81. The court allowed a deduction of Rs. 15,53,124 based on the Supreme Court decision in Kedarnath Jute Manufacturing Co. Ltd. v. CIT [1971] 82 ITR 363.