INCOME-TAX OFFICER, AJMER vs. AKANSHA JAIN, GWALIOR

ITA 1088/JPR/2026Status: DisposedITAT Jaipur11 September 2026AY 2024-259 pages
AI SummaryDismissed

What were the facts?

The assessee claimed a rebate under Section 87A on income including short-term capital gains taxable at special rates. The CPC disallowed this rebate in its intimation under Section 143(1). The CIT(A) allowed the rebate, which the Revenue appealed.

What did the Tribunal hold?

The Tribunal held that there is no express bar in Section 87A or Section 111A denying rebate on tax payable on short-term capital gains. The prospective amendment in the Finance Bill, 2025, further supports that no such restriction was in force for the relevant assessment year.

What were the issues?

Whether rebate under Section 87A is allowable on short-term capital gains taxable at special rates, especially when opting 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),Section 143(1)

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) Chennai 06(hereinafter referred to as “Ld. CIT(A)”), dated 28.02.2026 under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

2.

The grounds raised read as under:-

P a g e | 2 Akansha Jain

1.

Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in allowing rebate u/s 87A of the Income Tax Act, 1961 on income chargeable to tax at special rates under section 111A, without appreciating the statutory scheme of Chapter XII read with section 115BAC (1A), which treats such income as a separate cla

The order continues below.

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