2013 (6) TMI 842

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... peals by the Revenue are directed against different orders of the ld. CIT(A), Gwalior dated 12.10.2012 for the assessment year 2003-04. 2. In ITA No. 05/Agra/2013, the Revenue challenged the deletion of addition of ₹ 18,17,550/- made on account of disallowance of amount debited in grant and aid account. The ld. CIT(A) noted that the AO while competing the assessment denied exemption claim .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... (A). The assessee for claim of deduction of salary submitted before the ld. CIT(A) that the assessee is running a school in which over 3000 students are studying. To impart proper education to these students, sufficient number of teachers have been retained and salary have been paid to the teachers and salary of some of the teachers was being partly reimbursed by the Government of M.P. under vario .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... claimed on account of advance salary paid to the sanctioned staff is revenue in nature and accordingly deleted the addition of ₹ 18,17,520/-. 3. The ld. DR relied upon the order of the AO and submitted that when the amount is to be reimbursed by the Government of M.P. and no claim is made for deduction of the expenditure, therefore, such addition should not have been deleted by the ld. C .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... allowed as deduction in favour of the assessee if expenditures are incurred wholly and exclusively for the purpose of business or profession. The assessee claimed that the amount of the salary was to be reimbursed by the M.P. Government. Therefore, it was treated as advance salary to sanctioned staff, but vide letter dated 25.10.2001 when the government intimated that there would be no reimburseme .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... u/s. 143(3) on dated 20.03.2006, therefore, similar deduction is allowed u/s. 154 as well and the appeal of the assessee has been allowed. 6. Since we have also dismissed the departmental appeal on the same issue in regular appeal No. 05/Agra/2013, therefore, similar appeal arising out of rectification order u/s. 154 would not be maintainable. The departmental appeal fails and is accordingly di .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X