JAINA TALKIES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee is a registered firm. It had to pay a sum of Rs. 16,486 as employees' contribution under the Employees Provident Funds Act, 1952, for the period 1962 to December, 1970. It claimed this amount as an allowable expense in the assessment year 1972-73 for which the financial year 1971-72 was the accounting period.

(2.) IT appears that on 17th August, 1965, the Regional Provident Fund Commissioner passed an order requiring the assessee to pay the provident fund contribution of its employees for the period from February, 1962, to February, 1964. The assessee did not accept this liability. IT filed a civil suit and subsequently a writ petition in this court. The suit was dismissed on the finding that the assessee was employing more than 20 persons in its firm and was hence liable to pay the employees' contribution. The first appeal filed by the assessee was dismissed. The assessee then filed a second appeal in this court, which was also dismissed on October 26, 1970. Then the assessee filed a writ petition in this court which was dismissed on 4th February, 1971. Then the assessee made the payment during the financial year 1971-72.

(3.) AT the instance of the assessee, the Tribunal has referred the following question of law for our opinion :