DEPUTY COMMISSIONER OF INCOME TAX SPECIAL RANGE I COIMBATORE Vs. M/S SRI SHANMUGAVEL MILLS LTD COIMBATORE

JUDGEMENT

(1.) The Tax Case Appeal relates to the assessment year 1990-1991.

(2.) The Assessee is a closely held company, which had filed a return, for the assessment year 1990-1991, on 24.12.1990, declaring a total income of Rs. 36,63,900/- and a sum of Rs. 32,72,274/-, as per the computation, under Section 115J of the Income Tax Act, 1961.

(3.) The Assessee had made a provision for labour welfare expenses, amounting to Rs. 9,33,430/-. The said amount was disallowed by the Assessing Officer on the ground that it was a mere provision, and that such a provision had been disallowed during the previous assessment year.