Education cess paid by assessee is not allowable as expense u/s. 37

DCIT Vs Aarti Drugs Ltd (ITAT Mumbai)

Held that education cess paid by the respondent-assessee is not allowable as an expenditure under Section 37 read with 40(a)(ii) of the Income Tax Act.

Facts- The assessee has made investments on which it has earned exempt income. Accordingly, the assessee was asked to show cause as to why disallowance u/s14A r.w.r.8D should not be made. After considering the submission of the assessee, the AO computed the disallowance of Rs.31,65,557/

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