2001 (12) TMI 10

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....r is 1980-81. The assessee is a public limited company. The assessee took over the business of Salem Magnesite Ltd., which was mining magnesite and the lease was renewed from time to time. Between November 28, 1978, and January, 1979, the business was discontinued and the services of the workers were dispensed with. In January, 1979, all the fixed assets of Salem Magnesite Ltd. were purchased by t....

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.... on May 24, 1980. The Commissioner of Income-tax (Appeals), however, allowed the appeal of the assessee based upon the Supreme Court decision reported in the case of Kedarnath Jute Manufacturing Co. Ltd. v. CIT [1971] 82 ITR 363. The Tribunal took the view that the liability under the Provident Fund Act had accrued to it in the previous year relevant to the assessment year 1980-81. In the circumst....