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Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
<h1>Education cess not allowable as expenditure under Section 37 read with Section 40(a)(ii) after retrospective Finance Act 2022 amendment</h1> The SC held that education cess paid by the respondent-assessee is not allowable as an expenditure under Section 37 read with Section 40(a)(ii) of the ... Disallowance of expenditure under Section 40(a)(ii) read with Section 37 - retrospective amendment by the Finance Act, 2022 with effect from 01.04.2005 - non allowability of education cess as business expenditureDisallowance of expenditure under Section 40(a)(ii) read with Section 37 - non allowability of education cess as business expenditure - Education cess paid by the assessee is not allowable as an expenditure under Section 37 read with Section 40(a)(ii) of the Income tax Act in view of the retrospective amendment by the Finance Act, 2022. - HELD THAT: - The Court allowed the appeal on the basis of the respondent assessee's concession that the retrospective amendment effected by the Finance Act, 2022 (with effect from 01.04.2005) brings the education cess within the disallowance contemplated by Section 40(a)(ii) when read with Section 37. In consequence, the payment characterised as education cess cannot be treated as an allowable business expenditure. The bench recorded that the assessee has already paid the applicable tax on the disallowance.The education cess paid by the respondent assessee is not allowable as an expenditure under Section 37 read with Section 40(a)(ii); the appeal is allowed in those terms.Final Conclusion: Appeal allowed on the stated concession and direction: education cess held not allowable as business expenditure under Section 37 read with Section 40(a)(ii) in light of the retrospective amendment; no order as to costs. The Supreme Court allowed the appeal stating that Education cess paid by the respondent-assessee cannot be treated as an expenditure under Section 37 read with 40(a)(ii) of the Income Tax Act, 1961. The appeal was allowed without any order as to costs.
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