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2021 (6) TMI 620 - AT - Income TaxAdmissibility or otherwise of assessee’s subsequent claim for treatment of Excise Duty Refund as capital in nature without filing any revised return - HELD THAT:- Allowability of cess u/s 37 has been examined by the Co-ordinate Bench of ITAT in ITA No. 685/Cal./2014 [2018 (11) TMI 1611 - ITAT KOLKATA] wherein the amount of the cess paid has been held to be an allowable deduction. We find that the Hon’ble High Court of Judicature for Rajasthan at Jaipur in the case of Chambal Fertilizers and Chemicals Ltd. [2018 (10) TMI 589 - RAJASTHAN HIGH COURT] held that in view of the Circular of CBDT where the word ‘cess’ is deleted, the claim of the assessee for deduction is acceptable. In that case, the Hon’ble High Court held that there is difference between the cess and tax and cess cannot be equated with the cess. Hence, keeping in view the provisions of the Act, Circular of the CBDT and judicial pronouncements, we hereby hold that the assessee is eligible to claim the deduction of the ‘cess’ as per the provisions of Section 37 of the Income Tax Act.” We find nothing on record on behalf of the Department to take a different view. Therefore, to preserve the consistency in view, as approved by the Hon’ble Supreme Court in the case of Radhasoami Satsang [1991 (11) TMI 2 - Supreme Court] and respectfully following the view taken by coordinate Bench, we allow the claims of assessee.
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