M/S. SOLAR INDUSTRIES INDIA LIMITED, NAGPUR V. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCEL-1(2), NAGPUR

ITA 72/NAG/2021

AI Insights

The case involves M/s. Solar Industries India Limited appealing against the order of the CIT(A)-3, Nagpur, which disallowed their claim for a business deduction of Rs.1,55,47,330. This amount represented secondary and higher education cess, which the assessee argued should be deductible under section 40(ii) of the Income Tax Act, 1961. The primary legal contention was centered around the interpretation of Explanation-3 to section 40(ii), inserted by the Finance Act, 2022, with retrospective effect from 01.04.2005. The Tribunal, referencing a Supreme Court decision, upheld the disallowance, affirming that such deductions are not permissible.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136573 (ITAT-NAGPUR)
• Duration Of Justice: 2 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 21-09-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 23-08-2021
• Other Referred Cases: JCIT vs. Chambal Fertilizers and Chemicals Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJAT SINGHAI
• Assessee Lawyers: MANI JAI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH : NAGPUR [THROUGH VIRTUAL HEARING AT INCOME TAX APPELLATE TRIBUNAL : PUNE BENCHES : PUNE BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK RIPOTE, ACCOUNTANT MEMBER I.T.A.No.72/NAG./2021 Assessment Year 2017-2018 M/s. Solar Industries India Limited, 11, Zade Layout, Bharat Nagar, Nagpur. PIN – 440 033 Maharashtra. PAN AACCS2132E vs. The ACIT, Central Circle-1 (2), Nagpur. Maharashtra. (Appellant) (Respondent) For Assessee : Shri Mani Jai, C.A. For Revenue : Shri Rajat Singhai, Sr. DR Date of Hearing : 22.09.2023 Date of Pronouncement : 28.09.2023 ORDER PER SATBEER SINGH GODARA, J.M. : This assessee’s appeal for assessment year 2017- 2018, arises against the CIT(A)-3, Nagpur’s Order No. CIT(A)- 3/10184/2019-20, dated 27.07.2021, involving proceedings u/s.143(3) of the Income Tax Act, 1961 (in short “the Act”). Heard both the parties. Case file perused. 2. It emerges during the course of hearing that the assessee’s sole substantive grievance canvassed in the instant appeal challenges correctness of the learned lower authorities action disallowing it’s business deduction claim of 2 I.T.A.No.72/NAG./2021 Rs.1,55,47,330/- representing secondary and higher education cess; as the case may be, u/sec.40(ii) of the Act. 3. Learned counsel vehemently argued that the impugned deduction claim has been wrongly rejected in both the lower proceedings after invoking Explanation-3 to sec.40(ii) of the Act inserted vide Finance Act, 2022 with retrospective effect from 01.04.2005. We find the instant sole issue to be no more res integra once hon’ble apex court in JCIT vs., Chambal Fertilizers and Chemicals Ltd., [2023] 450 ITR 164 (SC) has already settled the law in department’s favour to this effect. Rejected accordingly. 4. This assessee’s appeal is dismissed. Order pronounced in the open Court on 28.09.2023. Sd/- Sd/- [DR. DIPAK P. RIPOTE] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 28 th September, 2023 VBP/- Copy to 1. The applicant 2. The respondent 3. The CIT(A)-3, 119, Aayakar Bhavan, Telangkhedi Road, Civil Lines, Nagpur. 4. The CIT (Central), Nagpur. 5. D.R. ITAT, Nagpur Bench, Nagpur. 6. Guard File. //By Order// //True Copy // Assistant Registrar, ITAT, Pune Benches, Pune. 3 I.T.A.No.72/NAG./2021 S.No. Details Date 1 Draft dictated on 27.09.2023 Sr.PS 2 Draft placed before author 27.09.2023 Sr.PS 3 Draft proposed & placed before the Author .09.2023 J.M. 4 Draft discussed/approved by Second Member .09.2023 A.M. 5 Approved Draft comes to the Sr. PS/PS .09.2023 Sr.PS 6 Kept for pronouncement on .09.2023 Sr.PS 7 Date of uploading of Order .09.2023 Sr.PS 8 File sent to Bench Clerk .09.2023 Sr.PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order