Held that the education cess was a mandatory expense to be paid but did not fall under capital and personal expenditure. Therefore, following the provisions of sections 40(a)(ii) and 115JB and CBDT Circular No. 91/58/66-ITJ(19), the assessee was entitled to the deduction as per the provisions of section 37 of the Act. (AY. 2013-14, 2014-15)
ACIT v. PC Jewellers Ltd. (2022) 93 ITR 244 (Delhi)(Trib.) Sas Research and Development (India) P. Ltd. v. Dy.CIT (No. 2) (2022) 93 ITR 501 (Pune)(Trib.)
S. 37(1) : Business expenditure-Education Cess-Additional grounds admitted-Allowable as deduction. [S. 40(a)(ii), 254(1)]