SHREY JAIN,JODHPUR vs. AO, JODHPUR

ITA 124/JODH/2026Status: DisposedITAT Jodhpur14 September 2026AY 2024-20259 pages
AI SummaryAllowed

What were the facts?

The assessee claimed a rebate under Section 87A on short-term capital gains. The CPC denied this rebate while processing the return, and the CIT(A) upheld this denial. The assessee's total income did not exceed Rs. 7,00,000 and they had opted for the new tax regime under Section 115BAC(1A).

What did the Tribunal hold?

The Tribunal held that Section 87A provides rebate on the entire tax liability computed on total income without distinguishing between normal and special rate incomes. The proviso to Section 87A and the non-obstante clause in Section 115BAC(1A) do not exclude special rate incomes from the rebate calculation for the relevant assessment year.

What were the issues?

Whether rebate under Section 87A is available on short-term capital gains taxable at special rates under Section 111A, especially when the assessee has opted for the new tax regime under Section 115BAC(1A).

Which sections of the Income-tax Act were involved?

Section 87A,Section 111A,Section 115BAC(1A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, “SMC” BENCH, JODHPUR

For Appellant: CA (thru V.C.)
For Respondent: Ms. Nidhi Nair, Addl. CIT-Sr, DR (Thru V.C.)
Hearing: 07.09.2026Pronounced: 14.09.2026

Per Annapurna Gupta, AM:- The present appeal has been filed by the assessee against the order passed by the Office of the Commissioner of Income Tax Appeal, Addl./JCIT(A)-02 Hyderabad (hereinafter referred to as “Ld. CIT(A)”),

P a g e | 2 Shrey Jain dated 04.12.2025 under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

2.

The grounds raised by the assessee read as under:-

1.

The Learned AO CPC has wrongly denial u/s 87A rebate on such special rate of income like short term capital gain Rs.3,88,713 tax rebate 87A Rs. 25,000. Since in the absence of any specific provision expressly denying 87A rebate, like sub section (6) of section 112A in case of long-

The order continues below.

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