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2014 (1) TMI 1398 - AT - Income TaxRe-opening order u/s 147 of the Act quashed – Escapement of income or not – Rebate u/s 88E of the Act allowed – Tax liability u/s 115JB of the Act – Held that:- The decision in ACIT v/s Shreepati Holdings and Finance Pvt. Ltd [2014 (1) TMI 1262 - ITAT MUMBAI] followed - 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. When the total income is assessed and the tax chargeable is computed, it is from that tax which is chargeable - the tax paid under section 88E is given deduction, by way of rebate, under section 87 of the Act - This is the legislative intent - That is a promise to give deduction of the tax already paid - This is the mod, in which tax already paid is handed back at the time of final computation - the assessee is liable for rebate under section 88E, even if the assessment is to be made after computing the book profit under section 115JB – validity of re-opening under section 147 is purely an academic thus, not discussed - Decided against Revenue.
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