2013 (11) TMI 108

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.... and in the circumstances of the case and in law, the learned CIT (Appeals) has erred in directing the A.O not to charge tax u/s 115JB of the I.T. Act at book profit of Rs. 3,48,42,560/-. 2.1 The Ld. CIT (A) ignored the findings recorded by the A.O and the fact that the rebate u/s 88E of the I.T. Act is not allowable on book profit. 3. The appellant craves leave to add, to alter, or amend any grounds of the appeal raised above at the time of hearing." 2. The assessee is a registered broker under SEBI and having membership of NSE, NSE Future & Option and NSDL depository. The assessee is engaged in the business of trading in shares. The return was processed under section 143(1) on 03.03.2009. The scrutiny assessment under section 143....

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....e 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 both under the regular provisions of the Income Tax Act and under the deeming provision under section 115JB of the Act. It has been provided that where the income tax payable by the assessee on the total income computed under regular provisions of the Act is less than 7 ½% of the book profit prepared in accordance with the Companies Act, the higher of the tax i.e. the book profit shall be deemed to be the total income of the assess....