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2012 (12) TMI 327 - AT - Income TaxProvision paid as salary to the employees before filing of the return - addition to income deleted by CIT(A) - Held that:- The addition was made by the AO on the plea that the assessee debited the impugned amount as provision for cadre staff salary whereas the claim of the assessee, during assessment proceeding that the provision for cadre staff salary was paid to District Cooperative Bank and 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 - in favour of assessee. Premium paid on government securities - Addition to income deleted by CIT(A) - Held that:- As decided in American Express International Banking Corporation Versus Commissioner Of Income-Tax [2002 (9) TMI 96 - BOMBAY HIGH COURT] that trading of securities is a banking business - as the assessee bank used to buy and sell securities to maintain statutory liquidity ratio, however, this buying and selling resulted into business income or loss was subjected to income-tax - in favour of assessee.
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