Surcharge amp; cess not to be included to compute Tax Effect

ITO Vs. Sri P. Prasen Kumar (ITAT Hyderabad)

It was noted that the tax effect of Rs. 90,000/- and education cess of Rs. 29,700/- do not form part of income tax. Vide para 6 of the order, this Bench has considered the definition of tax and relied on Co-ordinate Bench decisions particularly in the case of DCIT Vs. Dome Bell Electronics in ITA No. 2480/Mum/2012 date 22-07-2016 to conclude that surcharge and education cess should not be included, while calculating the tax effect. Since the tax thereon was Rs. 9 Lakhs only, which is less than Rs. 10 Lakhs limit prescribed

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