COMMISSIONER OF INCOME TAX Vs. ORIENT SUPPLY SYNDICATE

JUDGEMENT

(1.) In this reference under Section 256(1) of the I.T. Act, 1961, arising out of the assessment for the assessment year 1964-65, the following question has been referred to us :

(2.) It appears that the relevant previous year ended on May 31, 1963. The assessee is a firm dealing in wire ropes, chains and miscellaneous articles. In the computation of total income for the relevant previous year the assessee claimed deduction of Rs. 29,008 under the head " Provident Fund Contributions ". The ITO disallowed this claim on the ground that the provident fund contribution of Rs. 29,008 made by the assessee during the relevant previous year related to the liabilities of the earlier years and not of the relevant previous year.

(3.) Being aggrieved, the assessee went up in appeal before the AAC, who agreed with the view of the ITO and dismissed the assessee's appeal.