Deduction claimed of securities transaction tax under section 88E cannot be rejected if fulfill the condition of rule 20AB

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The brief facts of the case are that the assessee filed its return of income for the relevant year on 31-10-2007, admitting a tax liability of Rs.8,95,556/- under the Minimum Alternate Tax (MAT) provisions, per section 115JB of the Act. A tax credit of Rs.5,54,356/- in respect of Security Transactions Tax (STT) was claimed u/s. 88E of the Act by the assessee per its return, which however stood not allowed on processing thereof vide Intimation u/s. 143(1) of the Act dated 19-08-2008. The assessee agitated the same before the Assessing Officer (AO) vide its rectification letter dated 06-03-2009, which though stood rejected vide order there-under dated 17-03-2009. The assessee appealed there-against, and found favour with the first appellate authority. The assessee, it was found by the ld. CIT(A), had fulfilled the conditions laid down and prescribed under rule 20AB inasmuch as Form 10DB for payment of tax on transactions entered on the Stock Exchange, and Form 10DC (for payment of tax on transactions of sale of units of equity oriented mutual funds, i.e., in terms of STT Rules, 2004 (‘Rules hereinafter) (S.O. 1059E dated 28-09-2004), stood duly furnished by the assessee. Its claim was thus valid it law, so that its application u/s. 154 could not have been rejected. The AO was accordingly directed to allow appropriate relief to the assessee, i.e., as per the Rules. Aggrieved, the Revenue is in appeal.

Citation :
Dy. CIT, Circle-9, Ayakar Bhawan, 5t h Floor, P7,Chowringhee Square, Kolkata-69 (Appellant) V/s.Surya Shakti Advisory Pvt. Ltd. , 25/97, Prince Golam Mohhammad Saha Road, Kolkata-700 045 [PAN No.AADCS 5838C] (Respondent)