Education cess not allowable as expenditure: ITAT

The brief facts of the case is that the assessee had claimed education cess including secondary and higher educational cess as expenditure during the year.

Assessing officer had rejected the claim of the assessee which had been confirmed by CIT(A).

Aggrieved by the order assessee preferred appeal before the tribunal. ITAT in its order relied on judgment given by the Kolkata Bench of the Tribunal in the case of Kanoria Chemicals & Industries Ltd Vs. Addl. CIT (ITA No.2184/Kol /2018 dated 26.10.2021) and held that the education cess is not allowable as deduction. The Kolkata bench of Tribunal in the case of Kanoria Chemicals & Industries Ltd (supra) stated as follows:

“the education cess is an additional surcharge levied on income tax and hence it partakes the character of income tax. Accordingly it held that the education cess is not allowable as deduction“.

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