2014 (10) TMI 981

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....been raised:- 1. On the facts and in the circumstances of the case and in law, the ld CIT (A) erred in directing to exclude short term capital gains for the purpose of calculating "average rage of tax" for determining rebate u/s. 88E of the I.T.Act, without appreciating the fact that such method of computation is contrary to legislative intent as in such a situation, the tax rate would always be the rate applicable to the business profit only. i.e. maximum marginal rate of taxation" not appreciating the fact that for the purpose of Clause(iii) of Explanation 1 to Section 115JB, eligibility for deduction is to be considered on year to year basis" 2. On the facts and in the circumstances of the case and in law, the CIT(A) er....

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....om other than STCG   72,07,204 Average Rate of Tax (2425944*100/7207204   24,25,944 Tax Rebate u/s 88E   33.65% STT paid 8,42,413   Income from securities transactions subject to STT (596325/- @ 33.65%) 2,00,663   Lower of Two   2,00,663   4. The learned Departmental Representative submitted that, if short term capital gain is to be excluded for the purpose of average rate of tax, then the tax rate would always be the rate applicable to the business profit only, i.e., maximum marginal rate of taxation. He thus submitted that the short term capital gain cannot be excluded for the purpose of calculation of a....

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....ead "Profits and gains of business or profession", arising from taxable securities transactions, he shall be entitled to a deduction, from the amount of income-tax on such income arising from such transactions, computed in the manner provided in sub-section (2), of an amount equal to the securities transaction tax paid by him in respect of the taxable securities transactions entered into in the course of his business during that previous year : Provided that no deduction under this sub-section shall be allowed unless the assessee furnishes along with the return of income, evidence of payment of securities transaction tax in the prescribed form : Provided further that the amount of deduction under this sub-section shall not....