PR. COMMISSIONER OF INCOME TAX vs. M/S SHREE CEMENT LIMITED

[2024:RJ-JP:18621-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 294/2018 Pr. Commissioner Of Income Tax, Ajmer ----Appellant Versus M/s Shree Cement Limited, Bangur Nagar, Post Box No.33, Beawar, Rajasthan 305901 ----Respondent For Appellant(s) : Mr. Siddarath Bapna For Respondent(s) : Mr. Anant Kasliwal, Sr.Adv. With Mr. Raghav Krishnatri HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE BHUWAN GOYAL Order 22/04/2024 AVNEESH JHINGAN, J (ORAL):- 1. Aggrieved of order dated 24.04.2018 passed by Income Tax Appellate Tribunal, Jaipur Bench, Jaipur this appeal is filed under Section 260(A) of Income Tax Act, 1961(for short the “Act”). 2. Brief facts are that the respondent-Company for assessment year (for short “AY”) filed the returns and the assessment was framed under Section 143(3) of the Act. The proceedings were initiated under Section 148 on the basis that the appellant has wrongly debited the Education Cess in the profit and loss account. In other words, the appellant has claimed Education Cess as business expense. The addition of Rs. 6,30,40,519/- was made by Assessing Officer vide order dated 18.11.2016. The respondent failed in first appeal. The Tribunal quashed the initiation of reassessment proceedings and allowed

[2024:RJ-JP:18621-DB] (2 of 2) [ITA-294/2018] the appeal, the other ground raised with regard to the nature of Education Cess was not gone into. 3. On 28.02.2019, the appeal was admitted by formulating following substantial question of law:- “Whether the facts and in the circumstances of the case and in law, the Hon’ble ITAT was justified in reversing the decision of CIT(A) and quashing the assessment proceeding initiated

u/s. 147 of the Act, 1961 ignoring the provisions of Explanation 1 of Section 147 of the I.T. Act, 1961?” 4. Learned Senior Counsel appearing for the respondent on specific instruction submits that in view of the retrospective amendment in Section 40 of the Act by Finance Act, 2022, the respondent is not contesting the issue of Education Cess being a business expense. The respondent has deposited the tax due thereupon and in case of any short deposit, the same shall be deposited. 5. In view of the statement made by learned counsel for the respondent, the substantial question of law formulated has been rendered academic. With the deposit of tax and by non contesting of the issue on merits, the appeal has been rendered revenue neutral and is disposed of as infructuous. (BHUWAN GOYAL),J (AVNEESH JHINGAN),J Anu /Chandan/95 Whether Reportable: No