https://www.taxtmi.com/caselaws?id=314405 ITAT Bangalore ruled that education cess and Secondary and Higher Education Cess are not allowable deductions under section 40(a)(ii) or section 37. The tribunal held that Explanation 3 to section 40(a)(ii), inserted by Finance Act 2022 with retrospective effect from 01.04.2005, clarifies that cess forms part of tax and cannot be deducted. The tribunal rejected the assessee's argument that cess is not levied on business profits, noting that though calculated as percentage of income tax, it effectively constitutes a levy on profits and gains. The matter regarding self-assessment tax credit was remanded to the Assessing Officer for proper examination. en-us Wed, 27 Jul 2022 00:00:00 +0530 Thu, 06 Jun 2024 20:09:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=314405 ITAT Bangalore ruled that education cess and Secondary and Higher Education Cess are not allowable deductions under section 40(a)(ii) or section 37. The tribunal held that Explanation 3 to section 40(a)(ii), inserted by Finance Act 2022 with retrospective effect from 01.04.2005, clarifies that cess forms part of tax and cannot be deducted. The tribunal rejected the assessee's argument that cess is not levied on business profits, noting that though calculated as percentage of income tax, it effectively constitutes a levy on profits and gains. The matter regarding self-assessment tax credit was remanded to the Assessing Officer for proper examination. Case-Laws Income Tax Wed, 27 Jul 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=314405