INCOME TAX ACT, 1961

Section 40(a)(ii)

Business disallowance under section 40(a)(ii) - Education cess and secondary and Higher Education Cess - -

Assessee claimed deduction of Education Cess and secondary and Higher Education Cess AO disallowed deduction in view of section 40(a)(ii).Held: When the legislature had not provided for any prohibition on deduction of any amount paid towards 'cess' in clause (ii) of section 40(a), therefore, holding to the contrary would amount to reading something which is not to be found in the text of section 40(a)(ii). Accordingly, there was no prohibition on deduction of any amount paid towards 'cess' in section 40(a)(ii), while computing the income chargeable under the head 'profits and gains of business or profession. Accordingly, Education Cess and Secondary and Higher Education Cess was not disallowable as deduction under section 40(a)(ii).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13

INCOME TAX ACT, 1961

Section 14A(2)

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