AMAR PLYFILS PVT. LTD.,PORBANDAR vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIR-2, JAMNAGAR

PDF · subscribers
ITA 83/RJT/2018Status: DisposedITAT Rajkot07 October 2022AY 2014-152 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that due to a retrospective amendment by the Finance Act, 2022, which inserted Explanation-3 to Section 40(a)(ii) of the Act, Education Cess is not an allowable expenditure. This amendment is applicable to the assessment year in question.

What were the facts?

The assessee claimed Education Cess and Secondary and Higher Secondary Cess as allowable expenses. The Assessing Officer disallowed this claim.

What were the issues?

Whether Education Cess and Secondary and Higher Secondary Cess are allowable as business expenses in light of retrospective legislative amendments.

Which sections of the Income-tax Act were involved?

Section 37(1),Section 43AB,Section 40(a)(ii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: Shri Waseem Ahmed & Shri T.R. Senthil Kumar

For Respondent: Shri B.D. Gupta, Sr.D.R

PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-

This appeal is filed by the Assessee against the order dated 18.01.2017 passed by the Commissioner of Income Tax (Appeals), Jamnagar as against the assessment order passed u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year (A.Y) 2014-15. I.T.A No. 83/Rjt/2018 A.Y. 2014-15 Page No 2 Officer erred in disallowing claim of Education Cess and Secondary and Higher Secondary Cess as allowable expenses u/s. 37(1) of the Act r.w.s. 43AB of the Act.

3.

None appeared on behalf of the assessee. However we find that this issue is being settled by the retrospective amendment by the Finance Act, 2022 which inserted an Explanation-3 to Section 40a(ii) of the Act, which clarifies that Education Cess is not an allowable expenditure while computing profits and gains from business or profession. This being the retrospective amendment which is applicable for the assessment year 2014-05 also, therefore the Grounds raised by the Assessee is hereby rejected and the appeal filed by the assessee is dismissed.

4.

In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open court on 07-10-2022 (WASEEM AHMED) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBERJUDICIAL MEMBER Ahmedabad : Dated 07/10/2022 आदेश क" ""त"ल"प अ"े"षत / Copy of Order Forwarded to:-

1.

Assessee

2.

Revenue

3.

Concerned CIT

4.

CIT (A)

5.

DR, ITAT, Ahmedabad

6.

Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील"य अ"धकरण, राजकोट

More judgments on Section 37(1)

All 6,995 judgments and leading authorities on Section 37(1) →

Recent GST High Court judgments

Search GST case law →