9911796707
TMI Blog2016 (6) TMI 1337X X X X Extracts X X X X X X X X Extracts X X X X ..... has Short Term Capital Gains (STCG) which is taxable at the rate of 10% and also the fact that rebate u/s 88E was calculated at the average rate of tax which is inclusive of STCG tax also. 3. Brief facts of the case are that the assessee has filed his return of income on 23.10.2007 declaring the total income of Rs. 6,45,37,707/-. The case of the assessee was selected for scrutiny and the statutory notices u/s 143(2) and 142(1) were issued and served upon the assessee. Thereafter considering the submissions of the assessee from time to time , the assessment was framed u/s 143(3) of the Act on 14.11.2008 at an income of Rs. 2,78,57,848/-. Thereafter vide order dated 11.10.2012 passed under section 154 of the Act, the AO observed that of reba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per the mathematical formula provided for calculating such rebate. The AO has simply applied this mathematical formula with the figures of taxable income from securities transaction, net income and the tax liability and calculated the rebate allowable u/s 88E at Rs. 22,33,556/-. For applying the above formula, the AO has taken the figures supplied by the appellant himself in the return of income filed for the year under consideration. The AO has simply substituted these figures in the formula and calculated the rebate u/s 88E. 12. In. view of the facts and circumstances explained above, in my considered opinion, the rectification order passed u/s 154 working out the rebate u/s 88E at Rs. 22,33,556/- as against the rebate allowed under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eed the amount of income-tax on such income computed in the manner provided in sub-section (2). (2) For the purposes of sub-section (1), the amount of income-tax on the income arising from the taxable securities transactions, referred to in that sub-section, shall be equal to the amount calculated by applying the average rate of income-tax on such income. 53[(3) No deduction under this section shall be allowed in, or after, the assessment year beginning on the 1st day of April, 2009.] Explanation.-For the purposes of this section, the expressions, "taxable securities transaction" and "securities transaction tax" shall have the same meanings respectively assigned to them under Chapter VII of the Finance (No. 2) Act, 2004.]" The close ..... X X X X Extracts X X X X X X X X Extracts X X X X
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