2011 (9) TMI 1101

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.....2009. 2. The only issue in this appeal of revenue is against the order of CIT(A) directing the Assessing Officer to compute tax on normal income before rebate u/s. 88E of the Act on book profit for applying provisions of section 115JB of the Act. For this, revenue has raised following ground No.1: "1. The CIT(A)-VI, has erred in law in directing to compare Tax on normal income before rebate u/s. 88E with 10% of Book Profit for applying Sec. 115JB." 3. We have heard rival contentions and gone through facts and circumstances of the case. Brief facts are that the assessee company filed return of income declaring income under normal computation at Rs. 2,23,83,430/- and tax amounting to Rs. 67,00,029/-. The Assessing Officer noti....

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....aim relief (s) as prescribed by the law on account of double taxation and calculate balance tax and surcharge payable. Add interest payable as prescribed by the law to reach total tax surcharge and interest payable. h. Deduct the amount of prepaid taxes, if any like TDS, Tax collected at source, advance tax and self assessment tax. The result will be tax payable (or refundable). Part B of the I.T. Return Form for that year also shows the following: "PART-B COMPUTATION OF INCOME AND TAX THEREON 1. Income from house property (sch.4(12) or Sch. 7(1)(v) 2.(a) Income from business or profession [Sch.1(23) or Sch.7(2)(v)] (b) Profits and gains from transactions chargeable to securitie....

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.... the tax payable u/s 115JB, than only the rebate u/s 88E comes into play. In view of this I agree with the submissions of the appellant and the tax payable on the income computed under normal provision is much greater than 10% of the Book Profit and therefore, the provision of section 115iB does not apply. This ground of appeal is allowed." 4. We find that in present assessment year provisions of section 115JB of the Act provides for a minimum alternate tax for companies under this provision and company is required to pay at least 10% of its book profit as corporate tax and in case tax liability of a company under regular provision is more than this amount the provision of MAT will not apply and company will pay corporate tax as per regu....