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2013 (6) TMI 806 - ITAT MUMBAIDisallowance of expenses u/s 14A and Rule 8D - Assessee was engaged in the business of broking in shares and securities, trading in shares and securities as well as making investments. He received dividend income which was exempted from tax. The AO made disallowance of expenses u/s 14 A consisting of interest disallowance as per Rule 8D. Assessee claimed that he had not incurred any expenses for earning the dividend income and therefore, no disallowance should be made. HELD THAT : - While computing the disallowance of interest under Rule 8D, if the expenses are incurred in relation to the dividend received from trading shares, have to be excluded. Decision in the case of - CCI LTD. VERSUS JOINT COMMISSIONER OF INCOME-TAX [2012 (4) TMI 282 - KARNATAKA HIGH COURT], relied upon. Minimum Alternate Tax - Allowability of rebate u/s 88E while computing the book profit u/s 115JB - The claim of the assessee regarding allowability of rebate u/s 88E while computing the book profit u/s 115JB was rejected by AO who observed that the provisions of section 88E applied only to the case where total income of the assessee includes income chargeable under the head “ profit and gains of business and profession” arising from taxable securities and not to the deeming provisions of section 115JB - HELD THAT : - Rebate u/s 88E in respect of payment of Securities Transaction Tax (STT) has to be allowed even if total income is assessed u/s 115JB. Decision in the case of M/S. HORIZON CAPITAL LIMITED, VERSUS. INCOME TAX OFFICER, WARD 11 (2), [2010 (7) TMI 991 - ITAT BANGALORE], relied upon.
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