TaxTMI 
TaxTMI 
2014 (9) TMI 547
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.... The Tribunal has followed judgment of the Delhi High Court in Commissioner of Income Tax Vs. MBL and Co. Ltd. [2013] 358 ITR 0001, wherein it has been held that there is no reason why the remission of tax under Section 88E should not be available on tax as computed under the Minimum Alternative Tax scheme as both Section 115JB as well as normal provisions have been enacted to provide the machinery for computing total income of the assessee which is exigible to tax. There would be no rationale to limit the plain words of Section 88E and hold that remission in payment of tax is only applicable to the tax determined under the normal provisions of the Act. It has been observed:- "10. Section 115JB of....
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....determined under the normal provisions of the Act and not available with respect to minimum alternative tax as computed under Section 115JB of the Act. The purpose of Section 88E of the Act is to grant an assessee, to a limited extent, credit in tax on account of Security Transaction Tax already borne by him in respect of the business carried out by him in dealing in securities. This rebate would be equally applicable to tax as computed under Section 115JB of the Act as under the normal provisions of the Act. A division bench of the High Court of Karnataka has, in the case of Commissioner of Income Tax v. M/s Horizon Capital Ltd.: ITA No.434/2010 decided on 24.10.2011, held that the rebate under Section 88E of the Act would be available to ....
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.... 17. Therefore, the contention that this benefit is not available to the assessee whose total income is assessed under Section 115JB has no substance. In other words, when the total income is assessed and the tax chargeable is computed, it is from that tax which is chargeable, the tax paid under Section 88E is given deduction, by way of rebate, under Section 87 of the Act. This is the legislative intent. That is a promise to give deduction of the tax already paid. This is the mode in which tax already paid is handed back at the time of final computation. Therefore, the judgment referred by the Tribunal is strictly in accordance with law and does not suffer from any legal infirmity, which called for interference....