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2015 (9) TMI 905 - AT - Income TaxAddition on account of excess salary paid by the employer in the earlier years but recovered during the present year - Held that:- The employer was well within his powers to make recovery for excess payments made earlier. The excess payment made to the assessee was already detected. The amount which constituted “salary due from an employer” was only the amount net of recovery, which the employer was legally empowered to make, in respect of excess payments made on account of wrong pay fixation. The fact that the assessee, on her own, refunded the amount of excess salary received due to wrong pay fixation, was a gracious gesture, which is hallmark of academic fraternity anyway, on her part. Nothing, however, really turned on that. Whether she was to return the money or not, what was due to her as salary was salary accrued that year as reduced by the recoveries sanctioned by the law laid down by Hon’ble Supreme Court in the case of Chandi Prasad Uniyal & Ors. vs. State of Uttarakhand [2012 (8) TMI 928 - SUPREME COURT]. Since she was gracious enough to refund the excess salaries received in earlier years, the periodic payments made to her remained the same as normally due. The effect, however, remains the same. The salary due to the assessee this year was only ₹ 2,43,689. However, since she had refunded ₹ 2,13,132 by cheque immediately upon coming to know about excess salary payments to her, she was paid the amount of ₹ 4,56,821/- which would have been due to her but for this recovery. Whether she refunds the excess salary received in earlier years and gets full salary for this year, or whether she gets net of recovery salary this year, the amount due to her from employer, which can only be net of recoveries held permissible by Hon’ble Supreme Court, remains the same. Viewed thus, the impugned addition is not sustainable in law. We, therefore, direct the Assessing Officer to delete the impugned addition
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