{"id":12186,"date":"2020-09-11T12:04:58","date_gmt":"2020-09-11T12:04:58","guid":{"rendered":"http:\/\/itatonline.org\/digest\/sesa-goa-ltd-v-jcit-2020423-itr-426-bom-hc-2\/"},"modified":"2024-02-25T17:39:25","modified_gmt":"2024-02-25T12:09:25","slug":"sesa-goa-ltd-v-jcit-2020423-itr-426-bom-hc-2","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/sesa-goa-ltd-v-jcit-2020423-itr-426-bom-hc-2\/","title":{"rendered":"Sesa Goa Ltd. v JCIT (2020)423 ITR 426 \/117 taxmann.com 96\/ 193 DTR 41\/ 316 CTR 446  (Bom) (HC)\/Editorial: JCIT v. Sesa Goa Ltd. (2023) 295 Taxman 236 \/ (2024) 460 ITR 4(SC), High Court order is reversed"},"content":{"rendered":"<p>Court held that in the\u00a0Indian Income-tax Act, 1922\u00a0, S. \u00a010(4)\u00a0had banned allowance of any sum paid on account of \u201cany cess, rate or tax levied on the profits or gains of any business or profession\u201d. In the corresponding section\u00a040(a)(ii)\u00a0of the\u00a0Income-tax Act, 1961\u00a0the expression \u201ccess\u201d is quite conspicuous by its absence. In fact, legislative history bears out that this expression was in fact to be found in the\u00a0Income-tax Bill, 1961\u00a0which was introduced in Parliament. However, the Select Committee recommended the omission of expression \u201ccess\u201d and consequently, this expression finds no place in the final text of the provision in section\u00a040(a)(ii)\u00a0of the Act. The effect of such omission is that the provision in section\u00a040(a)(ii)\u00a0does not include, \u201ccess\u201d and consequently, \u201ccess\u201d whenever paid in relation to business, is allowable as deductible expenditure. This is also the view of the Central Board of Direct Taxes as reflected in Circular No. F. No. 91\/58\/66-ITJ(19), dated May 18, 1967. The Central Board of Direct Taxes Circular, is binding upon the authorities under the Act like the Assessing Officer and the appellate authority. Accordingly the , education cess is held to be deductible .\u00a0 Though the claim to deduction of education cess and higher and secondary education cess was not raised in the original return or by filing a revised return, the assessee had addressed a letter claiming such deduction before the assessment could be completed. However, even if we proceed on the basis that there was no obligation on the Assessing Officer to consider the claim for deduction in such letter, the Commissioner (Appeals) or the Appellate Tribunal, before whom such deduction was specifically claimed, was duty bound to consider such claim. Followed\u00a0 CIT v. Orient (Goa) P Ltd \u00a0<a href=\"http:\/\/www.taxlawsonline.com\/%5b2010%5d%20325%20ITR%200554\">[2010] 325 ITR 554<\/a>\u00a0(Bom)\u00a0 (HC) \u00a0( AY.2008-09, 2009-10)<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 40(a)(ii) : Amounts not deductible &#8211;  Any rate or tax levied &#8211; Education cess is held to be deductible .   [ S. 246A , 254(1) Indian Income-tax Act, 1922, S 10(4) ]   <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-12186","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3ay","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=12186"}],"version-history":[{"count":7,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12186\/revisions"}],"predecessor-version":[{"id":39644,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12186\/revisions\/39644"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=12186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=12186"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=12186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}