TMI Blog2021 (10) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... had held education cess is an allowable expenditure as the word cess is conspicuously absent under the provisions of section 40(a)(ii) - we hold that education cess is to be allowed as deduction. - IT (TP) A. No. 2349/Bang/2019 - - - Dated:- 28-9-2021 - George George K., Member (J) And B.R. Baskaran, Member (A) For the Appellant : G. Vaidehi, Adovcate For the Respondents : Priyar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while assessing the total income of the Appellant for the year under consideration, have erred in not allowing a deduction for education cess and secondary higher education cess (collectively known as 'education cess') for the year under consideration. On the facts and circumstances of the case and in law, the learned AO and Hon'ble CIT-9(A) ought to have allowed deduction of ed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of Sesa Goa Limited v. JCIT [(2020) 423 ITR 426 (Bom.)]. The learned Departmental Representative present was duly heard. 3. We have heard rival submissions and perused the material on record. The issue raised in the additional ground is a pure legal issue, which does not require any verification of facts. Therefore, we admit the same for adjudication. The Hon'ble Bombay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r profession . 3.1. The Hon'ble High Court also placed reliance on the CBDT Circular dated 18.05.1967, which clarified that upon omission of the term cess from the present section 40(a)(ii) of the I.T. Act, only rates or taxes needs to be disallowed, and hence, education cess ought not to be treated as Income-tax to be disallowed u/s. 40(a)(ii) of the I.T. Act. 3.2. The Hon'ble Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue No. 3 is required to be reversed and the said issue is answered in favour of the assessee . 3.3. The Mumbai Bench of the Tribunal in the case of Voltas Limited in ITA No. 6612/Mum/2018 (order dated 30.06.2020) had admitted additional ground of appeal with regard to the claim of education cess and adjudicated the matter in favour of the assessee, by following the judgment of the Hon'bl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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