TaxTMI 
TaxTMI 
2014 (1) TMI 1262
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....ayable is determined at normal provisions of Act or under MAT u/s. 115JB whichever is higher, then rebate u/s. 88E is to be allowed to the assessee and there was no prohibition in claiming rebate in respect of securities transaction tax paid. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition on bad debts amounting to Rs. 1,06,03,648/-. 3. On the facts and in the circumstances of the case the impugned order of the Ld. CIT(A) is contrary to law to be set aside and that of the AO be restored." 3. Briefly stated the facts of the case are that the assessee is a share broker, trader and investor in shares and securities. For the year under consideration, the assessee filed retu....
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....rking of MAT Profit as per profit & loss A/c 20,69,91,218/- 10% of Rs. 20,69,91,218/- 2,06,99,122/- The assessee further explained why tax payable as per returned income should be accepted in the light of Section 88E vis-à-vis provisions of Sec. 115JB of the Act. However, the AO did not accept the submissions of the assessee. According to the AO, income tax payable after rebate u/s. 88E is arrived at Rs. 1,15,19,081/- which is less than Rs. 2,06,99,122/- being 10% of Book profit. Therefore, by invoking provisions of Sec. 115JB, the Book profit of Rs. 2,06,99,122/- is deemed to be total income of the assessee and the tax payable thereof to be Rs. 2,06,99,122/- and computed the tax accordingly. 4. The AO fur....
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....of the Act. 6. Aggrieved by these findings of Ld. CIT(A), Revenue is in appeal before us. 7. Ground No. 1 relates to deletion of the tax liability u/s. 115JB. Before us, the Ld. DR strongly supported the finding of AO. The Ld. Counsel for the assessee explained that the decision of ITAT Bangalore Bench has been upheld by the Hon'ble High Court of Karnataka in the case of CIT Vs Horizon Capital Ltd. In ITA No. 434 of 2010. 8. After carefully considering the facts of the case, in our humble opinion that the facts in issue are squarely covered by the decision of the Hon'ble Karnataka High Court (supra) wherein the Hon'ble Karnataka High Court has held that : "Therefore, the contention that this benefit is not available to the asses....
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....en credited to the profit and loss account of the assessee, it was evident that a part of the debt was taken into account in computing the income of the assessee. The fact that the liability to pay the brokerage may arise at a point in time anterior to the liability to pay the value of the shares transacted would not make any material difference to the position. Both constitute a part of the debt which arises from the very same transaction involving the sale or, as the case may be, purchase of shares. Since both form a component part of the debt, the requirements of section 36(2)(i) are fulfilled where a part thereof is taken into account in computing the income of the assessee. Therefore, the assessee was entitled to deduction by way of ba....