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| The Tax Publishers2021 TaxPub(DT) 2066 (Mum-Trib) INCOME TAX ACT, 1961
Section 254(1)
The jurisdictional High Court in the case of Sesa Goa Ltd. [Tax Appeal No. 18 of 013] : 2020 TaxPub(DT) 1546 (Bom-HC) had held that education cess was an allowable business expenditure, and not subject to disallowance under section 40(a)(ii). Also, Rajasthan High Court in Chambal Fertilizers & Chemicals Ltd. 102 CCH 20 : (2018) TaxPub(DT) 5619 (Raj-HC) had held that education cess liability was eligible for deduction while computing total income. Accordingly, additional ground as regards allowability of education cess was purely legal one and was, therefore, admitted.
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Appeal (Tribunal) - Additional ground - Legal issue pertaining to allowability of education cess as expenditure under section 37(1) -
Assessee by way of additional ground raised before ITAT challenged disallowance made by AO of education cess in view of section 40(a)(ii). Held: Bombay High Court in Sesa Goa Ltd. [Tax Appeal No. 18 of 013] : 2020 TaxPub(DT) 1546 (Bom-HC) had held that education cess was an allowable business expenditure, and not subject to disallowance under section 40(a)(ii). Also, Rajasthan High Court in Chambal Fertilizers & Chemicals Ltd. 102 CCH 20 : (2018) TaxPub(DT) 5619 (Raj-HC) had held that education cess liability was eligible for deduction while computing total income. Accordingly, additional ground was purely legal one and was, therefore, admitted.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section 92C
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