CIT Vs. SURESHCHAND S. JAIN

JUDGEMENT

(1.) IN this appeal by the Revenue for assessment year 2006 -2007, following questions of law have been proposed for our consideration.

(2.) SO far as question (c) is concerned, both the Commissioner of Income Tax (A) as well as the tribunal have held that while computing the rebate available under section 88E of the Act the disallowance made under section 14A of the Act should not be taken into account. This according to the impugned order is that only expenditure incurred which does not form part of the total income has to be excluded. The disallowance under section 14A of the Act as held by the Tribunal will have no bearing in computing income from taxable securities transactions for the purposes of rebate under section 88E of the Act. The rebate under section 88E of the Act is with regard to income from taxable security transaction and disregarding the expenditure disallowed under section 14A to compute the income from taxable security transaction is appropriate. We find that view of the Tribunal upholding the view of CIT (A) is reasonable and calls for no interference by this Court. Question (c), therefore, is not entertained. The appeal is accordingly dismissed with no order as to costs.