COMMISSIONER OF INCOME TAX, BOMBAY vs MYSORE SPINNING & MFG. CO. LTD.

The Supreme Court held that the payment made by the assessee company to the Employees Provident Fund was not capital expenditure under Section 58K(1) of the Income-tax Act, as the fund was not exclusively for the company's employees. The Court found that the conditions for applicability of Section 58K were not met, particularly the requirement that the fund be in trust solely for the employees of the assessee. However, the expenditure was allowable under Section 10(2)(xv) as it was incurred in the accounting year and was for the purpose of business, thus satisfying the criteria for deduction.