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2013 (5) TMI 669 - HC - Income TaxRebate in respect of securities transaction tax u/s 88E - whether was liable to be adjusted from the tax as payable for the purpose of Section 115JB or is not relevant/material? - MAT - ITAT allowed the claim - Held that:- U/S 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. Therefore, it is clear that the assessee is liable to pay Securities Transaction Tax when he enters into securities transaction. Tax is payable simultaneously after realizing the consideration. However, if that transaction is included in the total income of the assessee where the total income is assessed either under the provisions of the Act or under Section 115JB when tax chargeable on such income is arrived at, he is given the benefit of tax deductions of the amount, which he has paid under section 88E by virtue of Section 87. When under Section 82A, the assessee is made liable to pay tax with an assurance that it will be deducted and Section 87 gives effect to such promise made under the statute. That is the reason why the word used to rebate. The amount paid is handed back to the assessee. Thus payment of tax twice on the same income is avoided. Therefore, the contention that this benefit is not available to the assessee whose total income is assessed under Section 115JB has no substance. As when the total income is assessed and the tax chargeable is computed, it is from that tax which is chargeable, the tax paid u/s 88E is given deduction, by way of rebate, u/s 87. This is the legislative intent. That is a promise to give deduction of the tax already paid. This is the mode in which tax already paid is handed back at the time of final computation. Therefore, the judgment referred by the Tribunal i.e. CIT V/S Horizon Capital Ltd. [2011 (10) TMI 489 - KARNATAKA HIGH COURT] strictly in accordance with law and does not called for interference. No substantial question of law involved in this appeal - In favour of assessee.
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