Per Shri T.N.C. Rangarajan, Judicial Member - This appeal by the assessee is directed against, certain disallowance’s in computing the total income of the assessee for the assessment year 1977-78.

2. The assessee is a public limited company. The first item in dispute relates to the disallowance of a sum of Rs. 4,42,930 being the damages paid by the assessee under section 14B of the Employees’ Provident Funds Act, 1952. The assessee was required to pay the amount by the order of the Regional Provident Fund Commissioner, dated 27-9-1976. The Regional Pro-vident Fund Commissioner had found that under para 38 of the Employees’ Provident Funds and Family Pension Fund Scheme and para 9(1) of the Family Pension Fund Scheme, the assessee was required to deposit the contributions of the employees along with the employer’s contribution and administrative charges to the fund within fifteen days of the close of each month. But the assessee had delayed the payment. The assessee had pleaded that the delay was due to lock-out and strikes in the factory as well as restriction by the RBI on borrowing on security of cotton and resultant paucity of liquid funds to pay the amounts on the due dates