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2012 (7) TMI 743 - AT - Income TaxAssumption of jurisdiction u/s 263 by CIT(A) - AO had not considered the fact that the assessee had paid lesser tax than it was obliged to do under MAT - Held that:- Looking at the provisions of section 87 the rebate is to be granted from the amount of income tax chargeable on the total income of the assessee. The income tax is computed after arriving at the total income of the assessee and section 87 does not differentiate between the total income computed under the regular provisions of the Act or under section 115JB. Provision of sections 87 and 88A to 88E also apply after the total income is computed under section 115JB and since the assessee’s total income includes the income from the taxable Securities Transactions, the assessee is entitled to a deduction of the amount equal to the STT paid by him in respect of the taxable Securities Transactions entered into in the course of business during the previous year - the tax liability as per MAT provisions was Rs.7,56,694 and rebate admissible under section 88E was Rs.26,98,260, therefore no prejudice was caused to the revenue by non-consideration of provisions of section 115JB by Assessing Officer - Once the assessment order is neither erroneous nor prejudicial to the interest of revenue, CIT has wrongly invoked the revision proceeding u/s. 263 - in favour of assessee.
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