1980 (9) TMI 152

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....deduction of Rs. 6,730 as contribution to provident fund in computing the total income for the asst. yr. 1977-78. 2. The CIT (Appeals) found that though the Employees Provident Fund and Family Pension Fund Act, 1952 was not applicable to the assessee company, it had itself created a Fund in 1956 on its own and the employees contributions were being deposited in a separate account with a Post Of....

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....ous year. It was also submitted that there was no formal transfer of the funds during the previous year to any Trust so as to satisfy Rule 14(1) of the Fourth Schedule. The contention of the assessee on the other hand was that the maintenance of the separate bank account with the Post Office was itself a creation of a Trust and the retrospective recognition had to be given effect in making the ass....

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....h allows the deduction of any sum paid to the recognised provident fund. The Supreme Court has held in the case of Mysore Spinning and Manufacturing Co. Ltd. (1970) 78 ITR 4 (SC) that this Rule which was identical to s. 59K which was considered in that case was confined to private provident funds applicable exclusively to the workmen of the assessee alone and cannot apply to public provident funds....

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....ting out that in that case the recognition was given within the previous year itself. But we are of the opinion that the decision of the Supreme Court is irrelevant to decide this issue for in that case it was held that the exception itself has no application and, therefore, the question when the expenditure accrued has to be decided on its own merits. On that question while the contention of the ....