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TMI Blog2013 (6) TMI 806X X X X Extracts X X X X X X X X Extracts X X X X ..... re incurred in relation to the dividend received from trading shares, have to be excluded. Decision in the case of - CCI LTD. VERSUS JOINT COMMISSIONER OF INCOME-TAX [ 2012 (4) TMI 282 - KARNATAKA HIGH COURT] , relied upon. Minimum Alternate Tax - Al lowability of rebate u/s 88E while computing the book profit u/s 115JB - The claim of the assessee regarding allowability of rebate u/s 88E while computing the book profit u/s 115JB was rejected by AO who observed that the provisions of section 88E applied only to the case where total income of the assessee includes income chargeable under the head profit and gains of business and profession arising from taxable securities and not to the deeming provisions of section 115JB - HEL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,84,498/- as per Rule 8D. 2.1 The assessee disputed the decision of AO and submitted before CIT (A), that the assessee had not incurred any expenses for earning the dividend income and therefore, no disallowance should be made. It was also submitted that out of total dividend of ₹ 1,03,80,734/- an amount of ₹ 97,28,013/-, had been received from shares and mutual funds units held as stock in trade and only a sum of ₹ 6,52,721/- had been received from shares held as investments. Therefore, the disallowance could not be made in relation to the trading shares. CIT (A), however, did not accept the contentions raised and held that expenses were required to be disallowed u/s 14 A irrespective of the fact whether dividend inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom which Rule 8D, the method prescribed by the Government for computation of disallowance u/s 14A is applicable on which there is no dispute. The only dispute raised by the Ld. AR is that no disallowance could be made in respect of dividend income received from trading shares. The claim of the assessee is supported by the judgment of Hon ble High Court of Karnataka CCI Ltd. Vs. JCIT (Supra). In the said case the Hon ble High Court held that the assessee had retained trading shares not with the intention of earning dividend income but for the purpose of trading and the dividend income was only incidental to the business of sale of shares. Earlier the special bench of Tribunal in case of Daga Capital Management Pvt. Ltd (119 TTJ 289) had h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal is allowability of rebate u/s 88E while computing the book profit u/s 115 JB. The claim of the assessee was rejected by AO who observed that the provisions of section 88E applied only to the case were total income of the assessee included in come chargeable under the head profit and gains of business and profession arising from taxable securities and not to the deeming provisions of secion 115 JB. 4.1 The assessee disputed the decision of AO and submitted before CIT (A) that the issue regarding allowability rebate u/s 88E while computing the book profit u/s 115 JB had been decided by the Bangalore bench of Tribunal in case Horizon Capital Ltd Vs.ITO in ITA no. 592/Bng/2010 for assessment year 2005-06 in the order dated 16.7.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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