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TMI Blog2013 (12) TMI 1061X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Revenue against the order of ld. C.I.T.(A)-VIII, Kolkata in Appeal No.278/CIT(A)-VIII/Kol/11-12 dated 25.07.2012 for the Assessment year 2009-10. 2. Shri A.K.Mahapatra, CIT(DR) represented on behalf of the Revenue and Shri Soumitra Chowdhury, Advocate represented on behalf of the assessee. 3. In the Revenue's appeal the Revenue has raised the following grounds :- "1. That, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Therefore, the same was penal in nature and not allowable as per the provisions of section 37(1) of the Income Tax Act, 1961." 4. In respect of ground No.1 the ld. DR submitted that in page 3 of the assessment order the AO had categorically pointed out that though the assessee had paid Rs.34,95,441/- to the faculty members being professionals for their services and TDS had not been made u/s 194 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) treated the payment as business expenditure. It was the submission that the order of ld. CIT(A) was liable to be reversed. 5. In reply the ld. AR drew our attention to pages 7 to 13 of the paper book which were the details of the salaries paid as also Form No.16 issued to some of the employees. It was the submission that even Form No.16 issued to the employees clearly show that the amounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has categorically submitted that the assessee is paying salary. A perusal of Form NO.16 clearly shows that what is paid by the assessee is only salary and a perusal of order of CIT(A) clearly show that he has taken into consideration that the employees are regular in the employment of the assessee and the assessee company has also deducted professional tax while disbursing the salary. Once it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 37(1) of the Act is a penalty for violation or law or a statute. In the circumstances we are of the view that the finding of the ld. CIT(A) on this issue deleting this addition is on the right footing and does not call for any interference. In the circumstances the appeal of the Revenue is dismissed. 7. In the result the appeal of the Revenue is dismissed. Order pronounced in the open c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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