TMI Blog2010 (7) TMI 991X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the previous year. The assessee s appeal is thus allowed and the AO is directed to give rebate u/s 88E for the STT paid by the assessee. In the result the assessee s appeal is allowed. - SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER Appellant By : Shri K.S. Ravishankar, Advocate. Respondent By : Smt. Preethi Garg, CIT. ORDER PER SMT. P. MADHAVI DEVI, J.M. : The assessee filed this appeal for the Assessment Year 2005-06. In this appeal, though the assessee has raised voluminous grounds of appeal, the crux of the issue is non-granting of the rebate under section 88E of the Income Tax Act, 1961 with regard to the Securities Transaction Tax (STT) paid by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 154 Dt.18.6.2009 to which assessee has submitted its reply along with the statement of total income and also MAT computation and therefrom the assessee claimed a rebate under section 88E of the Income Tax Act, 1961 for the STT paid by it. The Assessing Officer, however, rejected the claim of the assessee for rebate of STT paid and computed the tax liability against the income computed under section 115JB of the Income Tax Act, 1961. Aggrieved The assessee appealed before the first appellate authority i.e. CIT(A) who confirmed the order of the Assessing Officer and the assessee is in second appeal before us. 4. The learned counsel for the assessee reiterated the submissions made by the assessee before the authorities below and also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), of an amount equal to the STT paid by him in respect of the taxable securities transactions entered into in the course of his business during that previous year. He also drew our attention to the sub section (5) of section 115JB of the Income Tax Act, 1961 which provides that save or otherwise provided in this section, all other provisions of this Act shall apply to every assessee, being a company, mentioned in this section. Thus according to him, the total income is to be computed under the regular provisions of the Income Tax Act, 1961 and also under the Companies Act and if the income tax payable is less than 7 % of its book profit then the book profit shall be deemed to be the total income of the assessee and the tax payable by it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. 6. Having heard both the parties and having considered the rival contentions, we find that the only dispute is whether the rebate of STT paid by the assessee is allowable from the income tax computed against the total income computed under section 115JB of the Income Tax Act, 1961. The term total income has been defined under the Income Tax Act, 1961 as the total amount of income referred to in section 5, computed in the manner laid down in this Act. Section 5 of the Income Tax Act, 1961 defines the scope of the total income of a resident or a non-resident person. The total income of the assessee has to be computed under the regular provisions of the Income Tax Act, 1961 and in the case of a company it can be arrived at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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