AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2015 (4) TMI 441
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....r section 88E of the Income Tax Act, 1961 against the rebate of Rs. 75.07 lacs allowed by the Assessing Officer. 3. The facts pertaining to this ground and question have been noted in both, the Memo of Appeals before the Commissioner of Income Tax and the Tribunal as also in this Court. The Assessee is individually engaged in the business of derivative trade in shares and investment. The return of income was filed by the Assessee for the previous year ended on 31st March, 2008. The Assessee declared total income at Rs. 5,94,71,620/. He claimed rebate under section 88E at Rs. 1,01,87,300/-. He also furnished the working of disallowance under section 14A during the assessment proceedings. The assessment was completed under section 143(3) of ....
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....worked the average rate of tax as per section 88E. He upheld the working by the Assessing Officer and dismissed the Assessee's Appeal. 5. The matter was carried to the Tribunal and in paras 5 and 6 of the Tribunal's order, a reference was made to the decision of the Tribunal in the case of Oasis Securities Ltd. in Income Tax Appeal No. 2534/Mum/2009 for assessment year 2006-07 rendered on 30th September, 2010. The other order relied upon was in the case of Ashika Stock Broking Ltd. (44 SOT 556). 6. Mr. Malhotra submits that when the Tribunal distinguished its coordinate Bench decision in the case of Oasis Securities Ltd. (supra), then, the calculations made by the Assessing Officer and his order deserve to be upheld, and there was....
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.... the deduction or the figure concerned by relying upon some lossess, which have been brought forward by the Assessee from the prior assessment year. Mr. Shah would submit that it is the income from the taxable securities transactions in the previous year relevant to the assessment year, which enables the deduction to be claimed. If it is claimed in that manner and its computation is in terms of sub-section (2) of section 88E, then, the present Appeal does not raise any substantial question of law. The Tribunal's order cannot be said to be erroneous or vitiated by perversity either. He therefore submits that the Appeal be dismissed. 8. The Tribunal had before it a ground relating to rebate in respect of securities transaction tax under ....
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....(2) of section 88E. So long as the stipulation under sub-section (2) is adhered to and followed, namely the amount of income tax on the income arising from the taxable securities transactions referred to in sub-section (1), shall be equal to the amount calculated by applying the average rate of income on such income, the deduction deserves to be granted. Therefore, the clear language of the section has been taken into consideration. The total income in a previous year if includes any income arising from taxable security transactions, then, the Assessee is entitled to deduction from the amount of income tax on such income arising from such transactions. That is because the income from taxable securities transactions has already been subjecte....
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....nt with Mr. Malhotra that the decision of the Tribunal's coordinate Bench in Oasis Securities Ltd. (supra) has been distinguished but still the deduction has been granted. In para 6.1, the Tribunal concluded that the Assessee is entitled to rebate of Rs. 1.01 crores under section 88E of the Income Tax Act, 1961 as against the rebate of Rs. 75.07 lakhs allowed by the Assessing Officer. The Tribunal may have distinguished its order and decision of the coordinate Bench rendered in the case of Oasis Securities Ltd. (supra), but, pertinently, it was held that the surplus from share dealing of market/future and option segment may not be there, but there is net income after setting off of losses. There was an over all profit for the assessment....