The Tax Publishers2019 TaxPub(DT) 7162 (Pune-Trib)

INCOMED TAX ACT, 1961

Section 40(a)(ii)

Cess is not tax, therefore, education cess could not be disallowed under section 40(a)(ii).

Business disallowance under section 40(a)(ii) - Applicability - Education cess -

Assessee claimed education cess as allowable expenditure. AO invoked section 40(a)(ii) and disallowed deduction.Held: Cess is not tax, therefore, education cess could not be disallowed under section 40(a)(ii).

Followed: ITA No. 1111 & 1112/PUN/2017 & CO No. 23 & 24/PUN/2019 for the assessment year 2013-14 & 2014-15.Impliedly Followed: Chambal Ferlitisers and Chemicals Ltd. v. JCIT, Range-2, Kota in ITA No.52/2018 dated 31-7-2018.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13 to 2014-15

INCOME TAX ACT, 1961

Section 37(1)

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