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2011 (4) TMI 1312 - AT - Income TaxClaim for rebate u/s 88E - Securities Transaction Tax (STT) - HELD THAT:- the AO's interpretation implies that the appellant company is liable to tax of ₹ 2,43,83,654/- as per normal provisions of the Act, however, simply because after rebate u/s 88E on account of STT payment, there is no tax due and payable by the company it should be subjected to MAT at 10% of its books profits amounting to ₹ 81,76,903/- in addition to the normal tax payable and paid by the company. Taken together the tax payment by the company under normal provisions and under MAT totals up-to ₹ 3,25,60,557/- (Rs.2,43,83,654 + ₹ 81,76,903). It is my considered opinion that this was not the intent of the Legislature either with regard to provisions of section 115JB or with regard to imposition of STT. In light of the discussion, this ground of appeal is allowed and the AO is directed to delete the addition on account of MAT. disallowance u/s 14A - HELD THAT:- The total tax payable by the appellant under normal provisions is ₹ 2,43,83,654/- whereas STT paid by the appellant is ₹ 3,37,07,299/-. Since the appellant is to be allowed credit for STT payment against any tax liability, the levy of tax on the disallowance of ₹ 10,566/- is not in order. The A.O. is directed to adjust STT already paid by the appellant.” the issue involved in the grounds of appeal of the revenue is decided against the revenue and in favour of the assessee.
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