TMI Blog2014 (9) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... r computing total income of the assessee which is exigible to tax - There would be no rationale to limit the plain words of Section 88E and hold that remission in payment of tax is only applicable to the tax determined under the normal provisions of the Act. While computing the tax payable u/s 115JB, remission in form of Securities Transaction Tax (STT) in terms of Section 88E read with Section 87 would be available to the assessee it would be the position while computing the tax payable under the normal provisions - the tax remission u/s 88E has to be and should be taken into consideration both under the normal provisions as well as book profits computed u/s 115JB - The amount of remission u/s 88E would get reduced from the tax payabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... limit the plain words of Section 88E and hold that remission in payment of tax is only applicable to the tax determined under the normal provisions of the Act. It has been observed:- 10. Section 115JB of the Act provides for computation method for determining the total income of an assessee as an alternative to the total income as computed under Chapters IV, V, VI, VIA of the Act and under other provisions of the Act. Section 115JB also specifies the rate at which tax is payable on the income as determined under the said section. Section 88E provides for remission of tax to the extent of Securities Transaction Tax as paid by the assesse provided the condition specified therein is satisfied, namely, the income of the assessee in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the High Court of Karnataka has, in the case of Commissioner of Income Tax v. M/s Horizon Capital Ltd.: ITA No.434/2010 decided on 24.10.2011, held that the rebate under Section 88E of the Act would be available to tax as payable under Section 115JB of the Act. The relevant extract from the said judgment is quoted below:- 15. Under Section 88E, where the total income of an assessee in a previous year includes any income chargeable under the head 'Profits and gains of business of profession', arising from taxable securities transactions, he shall be entitled to a deduction, from the amount of income-tax on such income arising from such transactions. Section also provides the limit to which deductions shall be given. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal is strictly in accordance with law and does not suffer from any legal infirmity, which called for interference. We do not see any substantial question of law involved in this appeal, which merits admission. The appeal is dismissed. 11. We are also of the view, and accordingly hold, that the Income Tax Appellate Tribunal was correct in holding that the provisions of Sections 87 and 88E of the Act apply to the total income computed under Section 115JB of the Act and the assessee would be entitled to a deduction to the extent of the Security Transaction Tax borne by him during the course of business in the relevant previous year. 3. The effect of the aforesaid decision would be that while computing the tax payable under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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