Rajasthan HC reverses
ITAT’s order, holds that education cess cannot be disallowed under the
provisions of Sec. 40(a)(ii); Relies on CBDT Circular No. F. NO.
91/58/66-ITJ(19) dated May 18th , 1967 which clarifies that since the word
‘cess’ had been omitted from Sec. 40(a)(ii), only taxes paid are to be
disallowed for AY 1962-63 and onwards; Relies on SC ruling in the case of
Jaipuria Samla Amalgamated Collieries Ltd. wherein while ruling on disallowance
under Sec 10(4) erstwhile Income-tax Act, 1922, SC had held that 'road cess'
and 'public work cess' could not be treated as tax:HC
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