The Supreme Court held that Explanation 3 to section 40(a)(ii) inserted by Finance Act, 2022 with effect from 1-4-2005, made it clear that any surcharge or cess forms part of ‘tax’ and same could not be allowed as deduction while computing profits and gains of business of assessee, therefore, Education Cess claimed by the assessee was not allowable as a deduction under section 37(1). (AY. 2004-2005)