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2013 (7) TMI 111 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - whether net interest expense or gross interest expense be taken for the purpose of computing disallowance - Held that:- While making disallowance u/s 14A, the amount of expense is to be considered and in the present case, the amount of expense on account of interest cannot be said to be of gross amount as there is interest income also. Therefore, the assessee can be said to have incurred net interest only. Moreover the interest income was also taxed as business income and not as income from other sources. Therefore, CIT(A) has rightly accepted the contentions of assessee. In favour of assessee. Tax rebate u/s 88E - addition on account of MAT - whether tax under normal provision or as per book profit u/s 115JB is payable by the assessee - Held that:- As decided in CIT Versus Horizon Capital Ltd. [2011 (10) TMI 489 - KARNATAKA HIGH COURT] if the transaction on which STT is paid is included in the total income of the assessee where the total income is assessed either under the provisions of the Act or under Section 115JB when tax chargeable on such income is arrived at & it is from that tax which is chargeable, the tax paid u/s 88E is given deduction, by way of rebate, u/s 87. This is the legislative intent of giving deduction of the tax already paid - Decided against the Revenue.
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