TaxTMI 
TaxTMI 
2012 (7) TMI 743
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....rder dated 29t h December, 2009 passed by the Asses sing Officer under section 143(3) of the Income Tax Act, 1961 for the assessment year 2007-08 is neither erroneous nor prejudicial to the interest of the revenue. (2) That without prejudice to Ground No. 1 above, the l earned Commissioner of Income Tax erred in holding that the Assessing Officer failed to consider the applicability of provisions of sect ion 115JB of the Income Tax Act, 1961 when the tax payable on normal computation of income was apparently higher than the tax payable on "Book Profits". (3) That the impugned order dated 14.02.2012 passed by the learned Commissioner of Income Tax under section 263 of the Income Tax Act, 1961 is without jurisdiction, illegal and void ab in....
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....be given to assessee when computing the book profits under section 115JB was considered and decided in favour of the assessee by the Hon'ble Karnataka High Court in the case of Horizon Capital Limited reported in (2011) 042(I) ITCL 0542. It was the further submission that the ld. CIT has also not mentioned that the assessment order was erroneous and prejudicial to the interest of Revenue nor demonstrated how it was erroneous or prejudicial to the interest of revenue. It was the submission that the order passed under section 263 was liable to be annulled. 5. In reply, ld. D.R. vehemently supported the order of the ld. CIT passed under sect ion 263. It was the submission that the issue as to hither the assessee was eligible to claim th....
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.... the case of M/s. Lotus Capital Financial Services Ltd. -vs.- ITO in ITA No. 479/Kol./2011 for assessment year 2006-07, held at para 5 as under:- "5. We find that the issue of rebate/deduction u/s. 88E of the Act in respect to credit for Security Transaction Tax while computing income being MAT provisions of section 115JB of the Act, the issue is squarely covered in favour of assessee and against revenue by the decision of Bangalore Bench in the case of M/s. Horizon Capital Limited (supra), wherein the Tribunal vide para 6 has held as under: "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....
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.... the Income Tax Act, 1961. Even though the sub section (1) of section 115JB starts with the non-abstante clause, "Notwithstanding anything contained in any other provision of this Act", we find that it is only for the computation of the total income and the sub section (5) of section 115JB provides for a saving clause that the rest of the provisions of the Income Tax Act relating to deductions, rebate, etc the other provisions of the Income Tax Act shall apply. Therefore it is clear that the provision of sections 87 and 88A to 88E also apply after the total income is computed under section 115JB of the Income Tax Act, 1961 and since the assessee's total income includes the income from the taxable Securities Transactions, the assessee is ent....