The assessee claimed deduction in the assessment for the assessment year 1957 58 on account of the transfer of the amount of Rs.
3,01,772 1 7 to the Provident Fund Com missioner.
Such employers were further required to make their own annual companytributions according to the prescribed limit to that fund.
3,01,772 1 7 to the Regional Provident Fund Commissioner ?
The Board of trustees and the Officers administering the fund were required to open a Provident Fund account and in that account a separate account was maintained of each member showing the balance to his credit companytaining the companytributions of the employer.
Appeals from the judgment and order dated February 1, 2, 1966 of the Bombay High Court in Income tax Reference No.
The assessee appealed to the Appellate Tribunal.
The Provident Fund Commissioner cancelled the exemption granted under section 17, of the Provident Funds Act and required the assessee to companyply with all its provisions and the Scheme framed thereunder and further to transfer all the provident funds accumulations to the Employees Provident Fund immediately.
A provisional exemption was given on 1st July, 1953.
3,01,772 1 7 which represented the assessees companytribution to the two funds upto 31st October, 1952.
An appeal was taken to the Appellant Assistant Commissioner but it failed.
1,83,190 13 Proportionate interest thereon9,379 2 5 1,92,569 15 10 3,01,772 1 7 The assessee came within the first schedule to the Provident Fund Act and therefore it applied under section 17 for exemption from the operation of the provisions of that Act.
The assessee was, however, informed that pending the grant of exemption it need number make any payment of the accumulations to the Regional Provident Fund Commissioner, as was enjoined under the Provident Fund Act.
In accordance with the companymunication from the Commissioner, the assessee transferred an amount which included a sum of Rs.
Sen, S. K. Aiyar and B. D. Sharma, for the appellant.
Similarly, trustees of the private Provident Fund companystituted by an employer were also required to transfer the accumulated balances to the statutory Provident Fund.
The amounts standing to the credit of the two funds on that date so far as they are referable to the companytributions by the Company stood as follows Staff Provident Fund Companys companytributions upto 31 10 1952 89,605 9 2 Proportionate interest thereon 19,596 8 7 1,09,202 1 9 Workmens Provident Fund Companys companytribution upto 31 10 1952.
CIVIL APPELLATE JURISDICTION Civil Appeals No.
Following some companyrespondence between the Com missioner and the assessee the latter sought cancellation of the exemption by, means of a letter dated 11th July, 1955.
These funds were, number recognised under the provisions of Chapter IXA of the Income tax Act, 1922 hereinafter called the Act .
Subsequently another fund was started known as the Work men Provident Funds.
The Judgment of the Court was delivered by Grover, J. This is an appeal by certificate from a judgment of the Bombay High Court in an Income tax reference.
The Employees Provident Funds Act to be referred to as the Provident Funds Act came into force on 31st October, 1952.
C. Chagla and A. K. Verma, for the respondent.
The Income Tax Officer disallowed this claim on the ground that the amount in question was allowable to be treated ,as capital expenditure under the provisions of section 58K of the Act.
60 of 1961.
The respondent Company which is the assessee carries on business of the manufacture and sale of yam and cloth in Bangalore.
In 1914 it started a Provident Fund for the benefit of the monthly rated employees and this fund was called The Staff Provident Fund.
The employees,and the assessee made companytributions to the two funds from time to time.
1760 of 1967.
