JCIT Vs Sesa Goa Ltd. (Supreme Court of India)
In a significant ruling, the Supreme Court of India has determined that the ‘Education Cess’ cannot be claimed as a deductible expenditure under the Income Tax Act, 1961. This verdict came as a result of the case between the Joint Commissioner of Income Tax (JCIT) and Sesa Goa Ltd., where the court set aside the previous judgment and allowed the appeal in favor of the revenue authorities.
The court also directed the assessing officer to verify the quantum of ‘Education Cess’ claimed by Sesa Goa Ltd. in their returns or proceedings. This ensures that any such claims made in the past are accurately accounted for and rectified in accordance with the law.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
Delay condoned.
Leave granted.
Learned counsel for the respondent very fairly states that in view of the subsequent amendments in the Income Tax Act, 1961, “Education Cess” cannot be allowed as an expenditure.
In view of the statement made, the impugned judgment is set aside and the appeal is allowed, holding that the “Education Cess” cannot be allowed as an expenditure.
However, the assessing officer while implementing and giving effect to this order, will examine the question of the quantum/amount of “Education Cess”, if any, claimed by the respondent – SESA Goa Ltd., as an expenditure in the returns or in the proceedings.
