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2016 (3) TMI 1390 - AT - Income TaxReopening of assessment u/s 147 - tax liability u/s 115JB is more than the normal provision of the Act and further, assessee is not liable for deduction of rebate under section 88E while determining the tax liability under section 115JB - HELD THAT:- It is an admitted position that, there is neither any failure on the part of the assessee either to furnish the return of income under section 139(1) nor any failure to disclose fully and truly all material facts necessary for the assessment which is evident from the bare perusal of the “reasons recorded” and even from the assessment order. The assessee has duly shown the tax liability under the normal provisions and also as per under section 115JB. AO while computing the income in the original assessment under section 143(3) has taken note of this fact. So now, the AO cannot hold that such a tax liability computed by the AO is erroneous or there is any failure on the part of the assessee to disclose fully and truly all material facts. Conclusion of the CIT(A) for holding that, reopening of the assessment is bad in law is thus affirmed. Accordingly, we also direct that such an action initiated under section 148 should be quashed. CIT(A) has decided this issue in favour of the assessee after following the decision of Horizon Capital Ltd [2011 (10) TMI 489 - KARNATAKA HIGH COURT] wherein it has been held that, the assessee is entitled to rebate under section 88E of the Act in respect of STT paid where the income is assessed under section 115JB. Without there being any contrary decision brought to our notice, we do not find any reason to deviate from such a finding of the CIT(A). Accordingly, the grounds raised by the revenue stands dismissed.
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