The Tax Publishers2020 TaxPub(DT) 3372 (Del-Trib)

INCOME TAX ACT, 1961

Section 40(a)(ii)

Though cess may be collected as part of income-tax but that does not render such cess either rate or tax which cannot be deducted in terms of section 40A(ii), accordingly, cess on income-tax and was allowable as deductible.

Business disallownace under section 40(a)(ii) - Rates or taxes - Cess on income-tax -

Assessee claimed deduction of cess on income-tax. AO took the view that cess being an integral part of income-tax was covered under section 40(a)(ii) and therefore, could not be allowed as deduction. Held: Though cess may be collected as part of income-tax but that does not render such cess either rate or tax which cannot be deducted in terms of section 40A(ii), accordingly, cess on income-tax and was allowable as deductible.

Relied:Sesa Goa Ltd. v. Jt.CIT (2020) 117 Taxmann.com 96 (Bom-HC) : 2020 TaxPub(DT) 1546 (Bom-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2007-08



IN THE ITAT, DELHI BENCH

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT