INCOME TAX OFFICER, WARD-6(2), JAIPUR, JAIPUR vs. POONAM MODI, JAIPUR

ITA 1051/JPR/2026Status: DisposedITAT Jaipur11 September 2026AY 2025-269 pages
AI SummaryDismissed

What were the facts?

The assessee claimed a rebate under Section 87A on short-term capital gains (STCG) taxed at a special rate. The CPC denied this rebate during the processing of the return, but the CIT(A) allowed it. The Revenue appealed this decision.

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 rates. There is no express bar in Section 87A or Section 111A to deny rebate on STCG.

What were the issues?

Whether rebate under Section 87A is available on income chargeable to tax at special rates, specifically STCG under Section 111A, and whether the CIT(A) was justified in allowing it.

Which sections of the Income-tax Act were involved?

Section 87A,Section 111A,Section 250,Section 143(1),Section 139(1),Section 115BAC(1A),Section 112A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, “SMC” BENCH, JAIPUR

Hearing: 09.09.2026Pronounced: 11.09.2026

Per Annapurna Gupta, AM:- The present appeal has been filed by the Revenue against the order passed by the Office of the Commissioner of Income Tax, Appeal Addl./JCIT(A) Thiruvanantpuram (hereinafter referred to as “Ld. CIT(A)”), dated 10.02.2026under Section 250of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

2.

The grounds raised read as under:-

P a g e | 2 Poonam Modi

1.

Whether on the facts and circumstances of the case and in law, the Ld. Addl CIT(A)- Thiruvanantpuram is justified in allowing the rebate u/s 87A of the Act, on STCG, when rebate u/s 87A of the Act, 1961 is not available in respect of Income Tax payable on income chargeable to tax on special rates, which includes Short Term Capital Gain u/s 111A of the Act?

2.

Whether on the facts and circumstances of the

The order continues below.

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