Securities Transaction Tax rebate remains available under MAT computation where statutory conditions are satisfied.

Rebate under section 88E for Securities Transaction Tax paid is stated to remain available when tax is computed on book profit under section 115JB. The analysis notes that section 115JB operates with a saving clause preserving other provisions of the Act, including rebate provisions under sections 87 and 88E. Because the assessee's total income included income from taxable securities transactions, the statutory conditions for the rebate were treated as satisfied. The effect is that MAT computation under section 115JB does not, by itself, exclude deduction of Securities Transaction Tax rebate where the rebate conditions are otherwise met.

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Issues: Whether rebate under section 88E of the Income-tax Act, 1961 for Securities Transaction Tax paid is allowable while computing tax on book profit under section 115JB of the Income-tax Act, 1961.

Analysis: The rebate under section 87 is granted from the amount of income-tax chargeable on the total income of the assessee, and the statute does not distinguish between total income computed under the regular provisions and total income computed under the deeming provision in section 115JB. Although section 115JB begins with a non obstante clause, sub-section (5) preserves the application of the other provisions of the Act, including the rebate provisions. Since the assessee's total income included income from taxable securities transactions, the statutory conditions for rebate under section 88E were satisfied.

Conclusion: The rebate under section 88E is available even when tax is computed under section 115JB, and the assessee was entitled to deduction of the Securities Transaction Tax paid.

Ratio Decidendi: Where section 115JB operates subject to its saving clause, the rebate provisions in sections 87 and 88E continue to apply to tax computed on total income, including deemed income under the MAT mechanism.

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