TMI Blog2011 (9) TMI 1101X X X X Extracts X X X X X X X X Extracts X X X X ..... any will pay corporate tax as per regular scheme. Simultaneously, the assessee is eligible for rebate u/s. 88E (1) of the Act as is available to assessee whose total income in previous year includes any income chargeable under the head “profits and gains of business or profession” arising from taxable securities under sub-section (2) of Section 88E of the Act an assessee is eligible for deduction from the amount of income tax on such income arising from securities from such transactions computed in the manner provided in section 88E (2) of the Act of an amount equal to securities transaction tax paid by him in respect of taxable securities transaction entered into in the course of his business during the relevant previous year. It means ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The CIT(A)-VI, has erred in law in directing to compare Tax on normal income before rebate u/s. 88E with 10% of Book Profit for applying Sec. 115JB. 3. We have heard rival contentions and gone through facts and circumstances of the case. Brief facts are that the assessee company filed return of income declaring income under normal computation at ₹ 2,23,83,430/- and tax amounting to ₹ 67,00,029/-. The Assessing Officer noticed that under normal computation assessee has set off rebate u/s. 88E of the Act and as per provisions of MAT, this tax is lower, accordingly, he charged tax as per provisions of MAT u/s. 115JB of the Act. Aggrieved, assessee preferred appeal before CIT(A), who allowed the claim of assessee by stating f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent tax. The result will be tax payable (or refundable). Part B of the I.T. Return Form for that year also shows the following: PART-B COMPUTATION OF INCOME AND TAX THEREON 1. Income from house property (sch.4(12) or Sch. 7(1)(v) 2.(a) Income from business or profession [Sch.1(23) or Sch.7(2)(v)] (b) Profits and gains from transactions chargeable to securities transition tax included in (a) above [Sch. 14(1)(iii)] 3. Capital gains (a) Short-term (under section 111A [sch.2(8)] (b) Short-term (others) [sch.2 (9)] (c) Total short-term [Sch. (7) or Sch.7(3) (v)] (d) Long-term [Sch.2 (20) or Sch.7 (4) (v)] (e) Total capital gains [(c) + (d)] 4. Income from other sourc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5JB of the Act provides for a minimum alternate tax for companies under this provision and company is required to pay at least 10% of its book profit as corporate tax and in case tax liability of a company under regular provision is more than this amount the provision of MAT will not apply and company will pay corporate tax as per regular scheme. Simultaneously, the assessee is eligible for rebate u/s. 88E (1) of the Act as is available to assessee whose total income in previous year includes any income chargeable under the head profits and gains of business or profession arising from taxable securities under sub-section (2) of Section 88E of the Act an assessee is eligible for deduction from the amount of income tax on such income arisin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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