TMI Blog2021 (9) TMI 1126X X X X Extracts X X X X X X X X Extracts X X X X ..... re u/s. 40(a)(ii) - HELD THAT:- We find that such claim has been allowed by the co-ordinate benches in several cases and we refer to the decision in the case of EXLSERVICES. COM (INDIA) PVT. LTD. [ 2021 (9) TMI 361 - ITAT DELHI ] as held education cess is an allowable deduction while computing the income under the head Profits and gains from profession or business .Assessing Officer is directed to allow the deduction on cess, education cess and higher education cess. - ITA No. 5308/DEL/2018 - - - Dated:- 21-9-2021 - N.K. Billaiya, Member (A) And Sudhanshu Srivastava, Member (J) For the Appellant : Suresh K. Gupta, C.A. For the Respondents : Bhopal Singh, Sr. DR ORDER Per N. K. Billaiya , Accountant Member This ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) was convinced with the claim of the assessee, but he found that the assessee itself computed suo moto disallowance of ₹ 1,34,268/- u/s. 14A of the Act and accordingly, restricted the total disallowance to ₹ 1,34,268/-. 8. Before us, the ld. counsel for the assessee vehemently stated that by the decision of the Hon'ble Jurisdictional High Court of Delhi in the case of Caraf Builders and Constructions Pvt Ltd 414 ITR 122, disallowance u/s. 14A of the Act cannot exceed exempt income. 9. The ld. DR strongly stated that the assessee itself has suo moto disallowed ₹ 1,34,268/- and the disallowance restricted to that amount by the ld. CIT(A) is fully justifiable. 10. We have carefully considered the orders of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... additional ground raised in this regard and directed the AO to allow claim of deductibility of cess as deductible business expenditure. He pointed to the copy of relevant order placed at Page No. 49. He therefore submitted that by following the order of Tribunal on identical facts in assessee's own case in earlier years, the grounds be allowed. 21. Learned DR on the other hand did not controvert the submissions made by the Learned AR. 22. We have heard the rival submissions and perused the materials available on record. The issue in the present additional ground is with respect to claim of deduction of ₹ 70,98,828/- on account of payment of education cess. We find that identical issue arose in assessee's own case an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration and that of the earlier years has been pointed out by the Revenue. Before us, Revenue has also not placed any material on record to demonstrate that the ITAT orders in assessee's own case for earlier years on identical issue has been stayed/set aside/overruled by higher judicial forum. We therefore, following the order of the Tribunal in assessee's own case for earlier years and for similar reasons direct the AO to allow the claim of deductibility of cess amounting to ₹ 70,98,828/-. Thus the ground of the assessee is allowed . 12. Respectfully following the findings of the coordinate bench [supra], we allow the additional ground. The Assessing Officer is directed to allow the deduction on cess, education cess and h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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