Pr. Commissioner Of Income Tax, Ajmer v. M/S Shree Cement Limited, Bangur Nagar, Post Box

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 294/2018 Pr. Commissioner Of Income Tax, Ajmer ----Appellant Versus M/s Shree Cement Limited, Bangur Nagar, Post Box No.33,Beawar, Rajasthan 305901 ----Respondent For Appellant(s) : Mr. Siddarath BapnaFor Respondent(s): Mr. Anant Kasliwal, Sr.Adv. With Mr. Raghav Krishnatri HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE BHUWAN GOYAL Order 22/04/2024-AVNEESH JHINGAN, J (ORAL): 1. Aggrieved of order dated 24.04.2018 passed by Income TaxAppellate Tribunal, Jaipur Bench, Jaipur this appeal is filed underSection 260(A) of Income Tax Act, 1961(for short the “Act”). 2. Brief facts are that the respondent-Company forassessment year (for short “AY”) filed the returns and theassessment was framed under Section 143(3) of the Act. Theproceedings were initiated under Section 148 on the basis thatthe appellant has wrongly debited the Education Cess in theprofit and loss account. In other words, the appellant has claimedEducation Cess as business expense. The addition of Rs.6,30,40,519/- was made by Assessing Officer vide order dated18.11.2016. The respondent failed in first appeal. The Tribunalquashed the initiation of reassessment proceedings and allowed the appeal, the other ground raised with regard to the nature ofEducation Cess was not gone into. 3.On 28.02.2019, the appeal was admitted by formulatingfollowing substantial question of law:- “Whether the facts and in the circumstances of the case and in law, the Hon’ble ITAT was justified in reversing thedecision of CIT(A) andquashing the assessment proceeding initiatedu/s. 147 of the Act, 1961 ignoring the provisions of Explanation 1 of Section 147 of the I.T. Act,1961?” 4.Learned Senior Counsel appearing for the respondent onspecific instruction submits that in view of the retrospectiveamendment in Section 40 of the Act by Finance Act, 2022, therespondent is not contesting the issue of Education Cess being abusiness expense. The respondent has deposited the tax duethereupon and in case of any short deposit, the same shall bedeposited. 5.In view of the statement made by learned counsel for therespondent, the substantial question of law formulated has beenrendered academic. With the deposit of tax and by noncontesting of the issue on merits, the appeal has been renderedrevenue neutral and is disposed of as infructuous. (BHUWAN GOYAL),J (AVNEESH JHINGAN),J Anu /Chandan/95