CHIEF COMMNR. OF INCOME TAX, COCHIN vs M/S. KESARIA TEA CO. LTD.

The case involves a dispute over whether a 'write-back' of provisions made in previous years for purchase tax liability should be treated as taxable income. The assessee reversed provisions made between 1978-1981 following a Supreme Court dismissal of an SLP in a related matter (Neroth Oil Mills' case). The Supreme Court examined whether the Income Tax Appellate Tribunal was correct in deleting the addition of Rs.3,02,758/- to the assessee's taxable income.