TaxTMI 
TaxTMI 
2021 (9) TMI 643
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.... CIT(A) in restricting the disallowance made by the AO on account of section 14A of the Act in the facts and circumstances of the case. 3. Brief facts relating to the issue on hand are that the assessee is a joint venture, engaged in the manufacture of carbon and alloy steels and other engineering applications. The assessee declared total income of Rs. 47,15,79,870/- and the AO determined the same at Rs. 47,78,06,500/- inter alia making disallowance of Rs. 62,26,625/- u/s. 14A of the Act vide its order dated 26-12-2016 u/s. 143(3) of the Act. The CIT(A) restricted the disallowance with a direction to rework the disallowance under Rule 8D(2)(ii) of the Income Tax Rules. Having aggrieved by the order of CIT(A), the assessee is before us. ....
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....xempt income earned and placed reliance on the decisions of Hon'ble High Court of Bombay and referred to legal case laws paper book and argued that this Tribunal consistently following the decision of Hon'ble High Court of Bombay in the case of M/s. Nirved Traders Pvt. Ltd. reported in 421 ITR 142 (Bom) restricting the disallowance to the exempt income earned. 5. We note that in the case of M/s. Nirved Traders Pvt. Ltd. (supra) a substantial question of law was raised "Whether ITAT was right in law in confirming the disallowance under Section 14A of the Income Tax Act, 1961 in excess of exempt income earned by the Assessee during the assessment year in question?" The Hon'ble High Court of Bombay by placing reliance in the cas....
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....Education Cess is an allowable expenditure as per the provision of the I.T. Act. The relevant portion of the order of Tribunal in ITA No. 1578/PUN/2017 for A.Y. 2011-12 in the case of M/s. Advik Hi-Tech Pvt. Ltd. is reproduced here-in-below for ready reference: "12. The assessee has also preferred additional ground which reads as follows: "The Ld. AO be directed to allow deduction of Rs. 12,91,464/- paid towards Education Cess under Finance Act while computing the taxable income under normal provision of the IT Act." 13. We find that this issue is squarely covered by the decision of the Hon'ble Bombay High Court in the case of Sesa Goa Limited Vs. The Joint Commissioner of Income Tax, Tax Appeal No. 17 of 2013....
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....asoned at Para 33 of the said order that the Tribunal has observed that since "cess" is collected as a part of the income tax and fringe benefit tax, therefore, such "cess" is to be construed as "tax". However, the Hon'ble Bombay High Court held that there is no scope for such implications when construing a taxing statute. Even though, "cess" may be collected as a part of income tax, that does not render such "cess" either rate or tax, which cannot be deducted in terms of the provisions in Section 40(a)(ii) of the Act. The mode of collection is really not determinative in such matter. Therefore, it was held that amount "cess" paid is deductable from total income of the assessee. 14. The Pune Bench of the Tribunal in the case of....