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2021 (1) TMI 479 - AT - Income TaxDeduction of education cess paid u/s 40(a)(ii) - HELD THAT:- This issue is covered in favour of the assessee by the decision of Chambal Fertilizers Ltd. [2018 (10) TMI 589 - RAJASTHAN HIGH COURT]wherein it was held that education cess is not a part of tax. Accordingly, the same was held as allowable as a deduction and that disallowance u/s 40(a)(ii) of the Act cannot be made. Hon’ble High Court of Bombay in the case of Sesa Goa Ltd. vs. JCIT. [2020 (3) TMI 347 - BOMBAY HIGH COURT] held that “education cess is allowable expenditure as the word ‘cess’ is conspicuously absent under the provision of Section 40(a)(ii) of the Act”. This Bench of the Tribunal has applied and followed these decisions in the case of ITC Limited [2018 (11) TMI 1611 - ITAT KOLKATA] and other cases. Respectfully following the same we allow this claim of the assessee.
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