ITO, JAIPUR vs. SANJAY KUMAR GARG, JAIPUR

ITA 1120/JPR/2026Status: DisposedITAT Jaipur11 September 2026AY 2025-2612 pages
AI SummaryDismissed

What were the facts?

The assessee claimed a rebate under Section 87A on short-term capital gains (STCG) taxable under Section 111A. The CPC denied this rebate in the intimation under Section 143(1), but the CIT(A) allowed it. The Revenue appealed this decision.

What did the Tribunal hold?

The Tribunal held that there is no express bar in Section 87A or Section 111A to deny rebate on tax payable on STCG. The prospective amendment in the Finance Bill 2025 further supports that no such restriction existed 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.

Which sections of the Income-tax Act were involved?

Section 87A,Section 111A,Section 115BAC

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) Nagpur 01(hereinafter referred to as “Ld. CIT(A)”), dated 05.02.2026 under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

P a g e | 2 Sanjay Kumar Garg

2.

The grounds raised read as under:-

1.

Whether on the facts and circumstances of the case and in law, the Ld. Addl CIT(A)-1, Nagpur 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 t

The order continues below.

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