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2014 (9) TMI 547 - HC - Income TaxRemission of tax u/s 88E – Computation of profit u/s 115JB - Whether remission/rebate of tax u/s 88E should be taken into consideration for computing difference between the tax payable on normal income and on book profits for invoking Section 115JB of the Act – Held that:- The Tribunal had rightly followed Delhi High Court in Commissioner of Income Tax Vs. MBL and Co. Ltd. [2013 (5) TMI 669 - DELHI HIGH COURT] - there is no reason why the remission of tax u/s 88E should not be available on tax as computed under the Minimum Alternative Tax scheme as both Section 115JB as well as normal provisions have been enacted to provide the machinery for 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 payable under the two methods/manners of computing taxable income - The end result would be that the figure of STT would get balanced and not adversely affect either the Revenue or the assessee – revenue accepts that in case benefit of Section 88E is given under the two methods, the difference on the tax payable would be less than 10% - Section 115JB would not be applicable – Decided against revenue.
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