ITO, JAIPUR vs. KAILASH MAMODIA, JAIPUR

ITA 1158/JPR/2026Status: DisposedITAT Jaipur11 September 20268 pages
AI SummaryDismissed

What were the facts?

The assessee claimed a rebate under Section 87A on short-term capital gains. The CPC disallowed this rebate during the processing of the return. The CIT(A) allowed the rebate, and 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 income taxed at normal or special rates. Therefore, the assessee is eligible for the rebate on short-term capital gains.

What were the issues?

Whether rebate under Section 87A is available on short-term capital gains taxable at special rates. Whether the plain language of Section 87A allows for such a distinction.

Which sections of the Income-tax Act were involved?

Section 87A,Section 111A,Section 143(1)

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) Prayagraj(hereinafter referred to as “Ld. CIT(A)”), dated 13.02.2026under 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 Kailash Mamodia

1.

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

The order continues below.

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