Possible tranny damage?

With the engine shut off and trans. full the dipstick will read approx. 1 qt. overfull so that's where I fill dry transmissions to start with. Then start it and run it through the gears and check it again in neutral and fill as needed to the "add" mark leaving room for expansion when it warms up. Remember torqueflites only pump when in neutral so they have to be checked in neutral.