TaxTMI 
TaxTMI 
2021 (10) TMI 1367
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....ion of education cess for Rs.51.02 Lacs. 2. The assessee, vide letter dated 19/09/2021, has filed an additional ground challenging certain disallowance made by Ld. AO u/s 35(2AB). Since this ground has been dealt with by Ld. AO and the same has also been dealt with by Ld. CIT(A) in the impugned order, it is admitted in term of the decision of Hon'ble Apex Court in National Thermal Power Corporation Ltd. V/s CIT (1998; 229 ITR 383). 3. The assessee seeks deduction of education cess in terms of decision of Hon'ble Bombay High Court in Sesa Goa Ltd. Vs. JCIT (117 Taxmann.com 96) and the decision of Hon'ble Rajasthan High Court in Chambal Fertilizers and Chemicals Ltd. V/s JCIT (ITA No.52/2018 dated 31/07/2018). The assessee seek deduction u/....
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....ous by its absence. In fact, legislative history bears out that this expression was in fact to be found in the Income-tax Bill, 1961 which was introduced in the Parliament. However, the Select Committee recommended the omission of expression "cess" and consequently, this expression finds no place in the final text of the provision in Section 40(a)(ii) of the IT Act, 1961. The effect of such omission is that the provision in Section 40(a)(ii) does not include, "cess" and consequently, "cess" whenever paid in relation to business, is allowable as deductable expenditure. Therefore, respectfully following the same, we direct Ld. AO to allow the deduction of education cess paid by the assessee. This ground stand allowed. Quantum of deduction u/....
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....f found correct. 6.3 Before us, it is the argument of Ld. AR that the amount mentioned in Form 3CL would have no relevance prior to amendment in the Rule 6(7A)(b) w.e.f. 01/07/2016 and the deduction has to be allowed as claimed by the assessee and certified by the Auditors. For the same, Ld. AR referred to the cited decision of Pune Tribunal. The Ld. DR, on the other hand, submitted that deduction would be available only in accordance with Form 3CL issued by the prescribed authority. 6.4 After going through the cited decision of Pune Tribunal, we concur with the submissions of Ld. AR that deduction has to be allowed as claimed by the assessee and certified by the Auditors since the amendment was brought in the Rule 6(7A)(b) w.e.f. 01/07/2....