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2015 (10) TMI 757 - AT - Income TaxComputation of MAT tax liability - Whether the tax liability arising under normal provisions of the Act and u/s 115JB should be compared before allowing Rebate u/s 88E of the Act or after allowing the rebate? - Held that:- CIT(A) has followed the decision rendered by the Bangalore bench of Tribunal in the case of M/s Horizon Capital Ltd (2010 (7) TMI 991 - ITAT BANGALORE) and also the decision rendered by the Delhi bench of Tribunal in the case of M/s MBL & Co. Ltd (2011 (4) TMI 1312 - ITAT DELHI), wherein it was held that the rebate u//s 88A to 88E shall also apply to the tax computed u/s 115JB of the Act. The Tribunal has also noticed that the Return of income (ITR-6) prescribed in the Income tax Rules also supported the view taken by the assessees. Accordingly, the Ld CIT(A) reversed the view taken by the AO. We notice that the decision rendered by the Bangalore bench of Tribunal in the case of M/s Horizon Capital Ltd (supra) has since been approved by the Hon’ble High Court of Karnataka (2011 (10) TMI 489 - KARNATAKA HIGH COURT ), wherein it was held that the assessee is entitled to deduct the rebate u/s 88E of the Act from the tax liability arising u/s 115JB of the Act. Thus the tax liability arising under normal provisions of the Act and u/s 115JB of the Act should be compared before allowing rebate u/s 88E of the Act. - Decided in favour of assessee. Transaction charges paid to BSE/NSE - disallowance u/s 40(a)(ia) - non-deduction of tax at source - CIT(A) deleted the disallowance - Held that:- The various benches of the Tribunal have been holding that the tax was not deductible at source from the transaction charges paid to the Stock exchanges. Hence, it can be seen that the assessee before us also, was under bona fide belief in this regard and hence, we are of the view that the benefit of doubt given to the assessee by the Hon’ble Bombay High Court in the case of Kotak Securities Ltd (2011 (10) TMI 24 - Bombay High Court ) should also be extended to the assessee. The Ld A.R submitted that the assessee has started deducting tax at source from the transaction charges subsequent to the decision of Hon’ble Bombay High Court. Hence, for the foregoing reasons, we uphold the decision of Ld CIT(A) on this issue.- Decided in favour of assessee.
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