Case Law Details
Sarat Chatterjee & Co. Vs ACIT (ITAT Kolkata)
ITAT Kolkata held that education cess and Secondary and higher Secondary Education cess being part of the tax is not allowable as deduction.
Facts- Assessee contests confirmation of addition of Rs. 84,76,769/- by DRP as made by the AO/TPO on account of TP adjustment with respect to the international transactions without appreciating the fact that TP provisions are not applicable as the assessee’s income is chargeable to tax as per Tonnage Tax Scheme.
Assessee also contested the order of DRP in not allowing the deduction in respect of education cess and secondary and higher secondary education cess for the purpose of computing profits and gains from business or profession.
Conclusion- We are of the considered view that where the assessee has opted for tonnage tax scheme and has offered the income on presumptive basis, no TP adjustments are required to be made.
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