On appeal against the decision of the High Court affirming the order of the Tribunal to the effect that expenditure of education cess of Rs. 2,41,59,485 was not disallowable under section 40(a)(ii) of the Income-tax Act, 1961, held, allowing the appeal, that in view of the concession of the assessee in view of the amendment to section 40(a)(ii) of the Act by the Finance Act, 2022 with retrospective effect from April 1, 2005, the education cess paid by the assessee was not allowable as an expenditure under section 37 read with section 40(a)(ii) of the Income-tax Act, 1961. (AY-2009-10)
JCIT v. Chambal Fertilisers and Chemicals Ltd. (2023) 450 ITR 164 / 330 CTR 109 (SC) Editorial : ACIT v. Chambal Fertilisers and Chemicals Ltd. (2018) 61 ITR 33 (Jaipur)(Trib.)
S. 40(a)(ii) : Amounts not deductible-Rates or tax-Education cess-Not allowable as business expenditure-Amended by Finance Act, 2022 with retrospective effect from 1-4-2005 (2022) 442 ITR 91 (St). [S. 37(1)]