Maral Overseas Ltd, West Nirmar V. DCIT Central Circle-31, New Delhi

ITA 323/DEL/2021

AI Insights

Maral Overseas Ltd. filed appeals against the orders of the Learned Commissioner of Income Tax (Appeals)-30, New Delhi, for the assessment years 2014-15 to 2017-18. The primary issue in these appeals was the rejection of the claim for deduction of education cess, which the assessee argued was an eligible deduction under Section 37(1) of the Income Tax Act, 1961, and should be adjusted from book profit under Section 115JB. The Tribunal noted that the issue was no longer res integra, referencing the Supreme Court's decision in JCIT Vs. Chambal Fertilizers, which held that education cess paid by the assessee is not allowable as an expenditure under Section 37 read with Section 40(a)(ii) of the IT Act.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130695 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 10-05-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 25-03-2021
• Other Referred Cases: Joint Commissioner of Income Tax Vs. Chambal Fertilizers and Chemicals Ltd. (2022) 145 Taxman.com 420 (S.C)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 37; 37(1)

Judgement Text

Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’: NEW DELHI BEFORE, SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER ITA No.322/Del/2021 (ASSESSMENT YEAR 2014-15) ITA No.323/Del/2021 (ASSESSMENT YEAR 2015-16) ITA No.324/Del/2021 (ASSESSMENT YEAR 2016-17) ITA No.325/Del/2021 (ASSESSMENT YEAR 2017-18) Maral Overseas Ltd. Maral Sarovar, Khalbujorg, Kasrawad Khargone MP-451660 PAN-AACCM 0230B Vs. DCIT Central Circle-31 New Delhi (Appellant) (Respondent) Appellant by Mr. Satyajeet Goel, CA Respondent by Ms. Sarita Kumari, CIT-DR Date of Hearing 11/05/2023 Date of Pronouncement 17/05/2023 ORDER PER BENCH: The captioned appeals have been filed by Assessee against the separate orders dated 16/09/2020, 17/09/2020, 02/09/2020 ITA Nos.322 to 325/Del/2021 Maral Overseas Ltd. vs. DCIT Page 2 of 4 and 02/09/2020 passed by the Learned Commissioner of Income Tax (Appeals)-30, New Delhi [“Ld. CIT(A)”, for short], for Assessment Years 2014-15, 2015-16, 2016-17 and 2017-18 respectively. 2. Since, the issues involved in all these appeals are common in nature; hence, they are clubbed together heard together and disposed off by this common and consolidate order for the sake of convenience. 3. The common grounds raised by assessee in all these appeals except variance of amount which are as under: “1(i). That on the facts and circumstances of the case, the Ld. Cit(A) was not justified in rejecting the claim of education cess of Rs.3,85,065/- even through same is eligible deduction under the provisions of the Income tax Act, 1961. (ii) That in absence of any prohibition or restriction in the Income tax Act regarding claim of education. (iii) That education cess paid during the year being an eligible deduction u/s 37(1) of the Act and also liable to adjusted from book profit u/s 115JB, the rejection of claim is illegal and not in accordance with law. (iv) That the decision of Ld.CIT(A) is contrary to settled legal position ad scheme of the Income Tax Act. 2. The orders passed by Lower Authorities are not justified on facts and are bad in law.” ITA Nos.322 to 325/Del/2021 Maral Overseas Ltd. vs. DCIT Page 3 of 4 4. In all the four appeals the issue in dispute is whether the Ld.CIT(A) is right in rejecting the claim of education cess which has been claimed as deductable under provisions of the Income Tax Act. 5. The Ld. DR submitted that the issues involved in the above appeals are no more res integra in view of the judgment of Hon'ble Supreme Court of India in the case of Joint Commissioner of Income Tax Vs. Chambal Fertilizers and Chemicals Ltd. reported in (2022) 145 Taxman.com 420 (S.C). The Ld. Counsel for the assessee has also agreed that the only issues involved in the present appeal is regarding education cess which has been decided against the assessee by the Hon'ble Supreme Court in the case of JCIT Vs. Chambal Fertilizers (Supra) wherein the appeal filed by the Department and held that the education cess paid by the Assessee would not be allowed as an expenditure under Section 37 read with Section 40(a) (ii) of the IT Act. 6. In view of the above, the present appeals filed by the assessee are dismissed. Order pronounced in the open Court on 17 th May, 2023. Sd/- Sd/- (ANIL CHATURVEDI) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 17 /05/2023 Pk/sps/ R.N, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI ITA Nos.322 to 325/Del/2021 Maral Overseas Ltd. vs. DCIT Page 4 of 4