Treatment of cess under section 40(a)(ii): omission of cess limits disallowance to taxes in business assessments. Interpretation of section 40(a)(ii): the Select Committee omitted the word 'cess' from the clause, so disallowance under section 40(a)(ii) applies to taxes only and not to cesses; the Board instructs that this position be communicated to Income Tax Officers to prevent further litigation.