2024 (4) TMI 806 - SCH - Income Tax

Allowable expenditure of Education Cess - HELD THAT - As respondent very fairly states that in view of the subsequent amendments in the Income Tax Act, 1961, Education Cess cannot be allowed as an expenditure. In view of the statement made, the impugned judgment is set aside and the appeal is allowed, holding that the Education Cess cannot be allowed as an expenditure. However, the assessing officer while implementing and giving effect to this order, will examine the question of the quantum/amount of Education Cess , if any, claimed by the respondent SESA Goa Ltd., as an expenditure in the returns or in the proceedings.

Summary

The Supreme Court allowed the appeal, stating that "Education Cess" cannot be considered as an expenditure under the Income Tax Act, 1961. The assessing officer will determine the amount claimed as "Education Cess" by the respondent, SESA Goa Ltd.