1978 (2) TMI 61

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.... SATISH CHANDRA J.-The assessee is a bank. It derived income, inter alia, from banking business. For the assessment years 1966-67, 1967-68 and 1968-69, the assessee claimed deduction of Rs. 1,201, Rs. 3,272 and Rs. 2,814, respectively, on account of contribution to the employees' provident fund. The ITO rejected this claim, whose view was affirmed on appeal. The assessee then went up to the Tr....

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....that the assessee had created a reserve fund consisting of the employees' contribution, the contribution made by the bank to the employees' provident fund, one-fourth of the business profits of the assessee and the interest paid by the bank. This fund has been invested in securities like debentures, land mortgage bank, national plan certificates, etc. On these investments the bank was earning inco....

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....fund shall be credited to the account of the individual employee concerned, in proportion to the balance standing to his credit at the close of the preceding co-operative year. Rule 204 provides the modes in which the contributory provident fund shall be invested. The Tribunal has not gone into the facts and recorded any finding whether the assessee had in fact established a contributory provid....