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TMI Blog2022 (1) TMI 233X X X X Extracts X X X X X X X X Extracts X X X X ..... te the addition. Disallowance u/s. 14A in the computation of book profit u/s. 115JB - HELD THAT:- As in case M/s. Bhushan Steel Limited and others [ 2015 (9) TMI 1424 - DELHI HIGH COURT] holding that no disallowance can be made u/s. 14A in the computation of income u/s. 115JB. We respectfully follow the same and allow the ground of appeal. Disallowance of weighted deduction u/s. 35(2AB) - amount not allowed by the DSIR and held to be ineligible for the weighted deduction u/s. 35(2AB) - HELD THAT:- As decided in own case [ 2019 (10) TMI 776 - ITAT PUNE] observing that the amendment in the relevant rules came into force only from 01-07-2016 which would not apply to mar the claim of the assessee for the weighted deduction. After co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee earned exempt income of ₹ 5.42 crore. Disallowance of ₹ 20.00 lakh was suo motu offered u/s. 14A of the Act. The AO did not accept the assessee's contention and proceeded to compute disallowance as per Rule 8D(2) at ₹ 58,29,184/-. The additional amount of ₹ 38,29,184/- was added, which got confirmed in the first appeal. 4. Having heard both the sides and gone through the relevant material on record, we find that similar issue came up for consideration before the Tribunal in assessee's own case for the two immediately preceding assessment years, namely, 2013-14 and 2014-15. The assessment order for the instant year has been identically worded as was done for the earlier years. The Tribunal has repr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The amount not allowed by the DSIR at ₹ 29.00 lakh was held to be ineligible for the weighted deduction u/s. 35(2AB). The ld. CIT(A) confirmed the addition. 9. Having considered the rival submissions and perusing the relevant material on record, we find that similar issue came up for consideration before the Tribunal in assessee's own case for the preceding years. The Tribunal considered this aspect vide para no. 8 of its order by observing that the amendment in the relevant rules came into force only from 01-07-2016 which would not apply to mar the claim of the assessee for the weighted deduction. After considering the facts, the Tribunal granted weighted deduction on the amount not allowed by the DSIR. Since the facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same. Having gone through the subject matter of the additional ground taken up by the assessee, it is discernible that the additional ground raises a pure question of law. We, therefore, admit the additional ground for disposal on merits. 12. We find that this issue is no more res integra in view of the judgment of Hon'ble jurisdictional High Court in Sesa Goa Lt. Vs. JCIT (2020) 423 ITR 426 (Bom.) in which it has been held that Education Cess is not disallowable expenditure u/s. 40(a)(ii) of the Act. Similar view has earlier been taken by the Hon'ble Rajasthan High Court in Chambal Fertilisers and Chemicals Ltd. and Another Vs. JCIT (2018) 102 CCH 0202 (Raj-HC). We, ergo, direct to allow deduction for such an amount after veri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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