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2016 (9) TMI 763 - AT - Income TaxReopening of assessment - allowing rebate for Securities Transaction Tax (STT) under section 88E in a case where an assessee is also exigible to tax under section 115JB of the Act - Held that:- The CIT(A) has clearly brought out the error on the part of the Assessing Officer while forming a belief about the escapement of income. Section 88E of the Act provides for a rebate in respect of STT paid. Ostensibly, such rebate is available against the income-tax payable by an assessee subject to other conditions specified in the section. If we read the relevant provisions, it is quite clear that Section 88E of the Act does not envisage any distinction between total income computable under the normal provisions of the Act and that computable under Section 115JB of the Act so far as it relates to the granting of rebate against the amount of income-tax payable. Therefore, in our view, it would not be wrong to conclude that the interpretation sought to be placed by the Assessing Officer even at the time of formation of belief for issuance of notice under section 147/148 of the Act was not borne out of the bare provisions of the Act. Of course, the stand of the Assessing Officer is also contrary to the judgment of the Hon’ble Karnataka High Court in the case of M/s. Horizon Capital Ltd. (2011 (10) TMI 489 - KARNATAKA HIGH COURT ), but that decision is of a date later than the date on which the Assessing Officer initiated the proceedings under section 147/148 of the Act. Be that as it may, in our view, the CIT(A) has succinctly brought out that the interpretation made by the Assessing Officer to form the belief about escapement of income is not supported by the bare provisions of the Act also, which we hereby affirm. As a consequence, we affirm the action of CIT(A) in treating the initiation of proceedings under section 147/148 of the Act as invalid. Thus, on this aspect also Revenue fails. - Decided in favour of assessee
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