9911796707
TMI Blog2012 (12) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... ore filing of the return. b. deleting the addition of Rs.7,50,000/- made by the Assessing Officer on account of premium paid on government securities." 2. During hearing, the Branch Manager of the assessee appeared in person and contended that the impugned issues are covered by the decision of the Tribunal dated 19.10.2011 (ITA No.625/Ind/2010 AY 2007-08 and ITA No.627 & 547/Ind/2010 for AYs 2007-08 and 1994-95). This assertion of the assessee was not controverted by the Revenue. 3. We have considered the rival submissions and perused the material available on record. So far as deleting the addition on account of salary paid to the employees before filing of return is concerned, this issue was deliberated upon in para 4 of the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee debited the impugned amount as provision for cadre staff salary. The claim of the assessee, during assessment proceedings, was that the provision for cadre staff salary was paid to District Cooperative Bank and further claimed that since payments could not be paid before 31.3.2008, the impugned amount of Rs.1.20 crores was debited in the p & L account towards provision for cadre staff salary. A sum of Rs.1,19,49,383/- was paid before filing the return of income, therefore, as per provision of Sec. 43B, salary paid to the employees, before filing the return of income, is an allowable deduction, consequently, we, following the decision dated 19.10.2011 (supra), find no infirmity in the conclusion drawn in the impugned order, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income attributable thereto is part of its banking business. The Tribunal held that the trading in securities is very much part of banking business/banking activities, therefore, the premium paid in respect of securities would also partake the character of revenue. In the present appeal also since the premium paid is related to regular business activity of the assessee bank, therefore, it has to be treated as revenue expenditure which is an allowable expenditure, therefore, we find no infirmity in the stand of learned Commissioner of Income Tax (Appeals). It is affirmed, consequently, the appeal of the revenue has no merit and dismissed as such." 4.1 The impugned addition was made by the ld. Assessing Officer on the ground that premiu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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