2013 (8) TMI 441

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....GUPTA, J.M. This is an appeal by department against the order of ld. CIT (A) relating to assessment year 2008-09. 2. The department is objecting in allowing contribution of PACS Managers' salary amounting to Rs. 1,13,38,000/-. 3. During the assessment proceedings, it was noticed by the AO that assessee has made provision for PACS Managers' salary but no disbursement had been made out of t....

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....ce on the order of the AO. 6. On the other hand, the ld. Counsel of the assessee placed reliance on the order of ld. CIT (A). 7. After considering the orders of AO and ld. CIT (A), we find no infirmity in the finding of ld. CIT (A) as ld. CIT (A) has deleted the disallowance following the order of Tribunal for immediately preceding year in which similar addition was made and which was delete....

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....Associated Power Co. Ltd. vs. CIT (supra) is not applicable. The Hon'ble Apex Court held that application of the doctrine of diversion of income by reason of overriding title is not applicable in that case as the reserve is out of the revenues of the undertaking and reach the electricity company and is not diverted away from it. However, in the instant case, the amount is to be contributed to a fu....