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TMI Blog2013 (12) TMI 647X X X X Extracts X X X X X X X X Extracts X X X X ..... al Ltd. [2011 (10) TMI 489 - KARNATAKA HIGH COURT] - While computing the total income u/s 115JB of the Act, the assessee is entitled to claim deduction of the amount equal to the STT paid by him in respect of the taxable securities transactions entered into in the course of business during the previous year – Decided in favour of assessee. - I.T.A. NO. 7856/M/2011 - - - Dated:- 6-2-2013 - Shri Dinesh Kumar Agarwal And Shri D. Karunakara Rao,JJ. For the Appellant : Shri Sanjay R. Parikh For the Respondent : Shri Surinderjit Singh, CIT-DR ORDER Per D. Karunakara Rao, AM:- This appeal filed by the assessee on 21.11.2011 is against the order of CIT (A)-16, Mumbai dated 23.8.2011 for the assessment year 2008-09. 2. There a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perused the material placed before us as well as the decisions cited by the Ld Counsel. On perusal of the above cited decisions, we find that so far as the legal principle is concerned, the provisions of section 14A are not applicable to the dividend earned out of the shares held as stock-in-trade as held by the Hon'ble High Court of Karnataka in the case of M/s. CCI Ltd., vs. JCIT (supra) and the held portion of the judgment is reproduced as under:- "When no expenditure is incurred by the assessee in earning the dividend income, no notional expenditure could be deducted from the said income. It is not the case of the assessee retaining any shares so as to have the benefit of dividend. 63 per cent of the shares, which were purchased, are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 115JB of the Act. The Assessing Officer while making the assessment under section 115JB of the Act, stated that rebate under section 88E of the Act is not allowable to the assessee while computation u/s 115JB of the Act. In this regard, Ld Counsel mentioned that the Assessing Officer has not given credit to the tax paid u/s 88E of the Act while invoking the provisions of section 115JB of the Act and the same is against the ratio of the judgment of the Hon'ble Karnataka High Court in the case of CIT Another vs. M/s. Horizon Capital Ltd. in ITA No.434/2010, dated 24.10.2011. Ld Counsel also placed reliance on the division bench order of this Tribunal in the case of DCIT vs. M/s. Naman Securities Finance Pvt. Ltd., in ITA No.6533/Mum/2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per provision u/s 115JB of the Act. A similar issue has come up before the Hon'ble Karnataka High Court in the case of M/s. Horizon Capital Limited (supra). The Hon'ble High Court while confirming the order of the Tribunal in the above case, has held that while computing the total income u/s 115JB of the Act, the assessee is entitled to claim deduction of the amount equal to the STT paid by him in respect of the taxable securities transactions entered into in the course of business during the previous year. Since this issue is squarely covered in favour of the assessee by the decision of the Hon'ble Karnataka High Court in the case of M/s. Horizon Capital Limited (supra), we do not find any infirmity in the order of the Ld CIT (A). Hence, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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