INCOME TAX OFFICER WARD 2(1), AJMER, AJMER vs. MINAXI, AJMER

ITA 1112/JPR/2026Status: DisposedITAT Jaipur11 September 2026AY 2025-268 pages
AI SummaryDismissed

What were the facts?

The Revenue appealed against the CIT(A)'s order allowing rebate under Section 87A on short-term capital gains (STCG) taxable under Section 111A. The assessee had claimed this rebate, which was initially denied by the CPC during processing but allowed by the CIT(A).

What did the Tribunal hold?

The Tribunal held that Section 87A provides rebate on the entire tax liability computed on total income without distinction between normal and special rates. There is no express bar in Section 87A or 111A to deny rebate on STCG, and subsequent legislative amendments reinforce this interpretation for the relevant assessment year.

What were the issues?

Whether rebate under Section 87A is allowable on short-term capital gains taxable 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, JAIPUR BENCHES, “SMC” BENCH, JAIPUR

Hearing: 10.09.2026Pronounced: 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 01(hereinafter referred to as “Ld. CIT(A)”), dated 26.02.2026 under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

P a g e | 2 Minaxi

2.

The grounds raised read as under:-

1.

Whether on the facts & 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 u/s 111A, without appreciating that such income is governed by the special provisions of Chapter XII and forms a distinct class of income liable to tax at prescribed rates, thereby falling outsid

The order continues below.

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