RENU SINGLA,GURGAON vs. INCOME TAX OFFICER, WARD 3(1), GURGAON

ITA 5416/DEL/2026Status: DisposedITAT Delhi09 September 2026AY 2025-265 pages
AI SummaryAllowed

What were the facts?

The assessee claimed a rebate under Section 87A on their total income, which included Short Term Capital Gains (STCG) taxable under Section 111A. The CPC restricted the rebate, excluding the tax attributable to STCG, leading to a demand. The CIT(A) confirmed this.

What did the Tribunal hold?

The Tribunal held that the restriction on Section 87A rebate for special-rate income was introduced prospectively from AY 2026-27. For AY 2025-26, the proviso to Section 87A grants rebate to individuals with total income not exceeding Rs. 7,00,000 under Section 115BAC without excluding income taxable under Section 111A.

What were the issues?

Whether Section 87A rebate is allowable on tax attributable to STCG taxable under Section 111A for AY 2025-26 when total income is below Rs. 7,00,000 and tax is computed under Section 115BAC.

Which sections of the Income-tax Act were involved?

Section 87A,Section 111A,Section 115BAC,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’: NEW DELHI

For Appellant: Shri Mohit Gupta, Advocate
For Respondent: Shri Manoj Kumar, Sr. DR
Hearing: 14.07.2026Pronounced: 09.09.2026

PER S.RIFAUR RAHMAN,AM:

1.

This appeal is filed by the assessee against the order passed by the ld. Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi [for short ‘ld. CIT (A)] dated 14.03.2026 for the Assessment Year 2025-26. 2. At the time of hearing, ld. AR submitted that the issue involved in the present appeal is whether rebate u/s 87A of the Income Tax Act, 1961 (for short ‘the Act’) is allowable on tax attributable to STCG taxable u/s 111A of the Act, for AY 2025-26, where the assessee’s total income i.e.

2 Rs.5,73,610/- is below Rs.7,00,000 and tax is computed u/s 115BAC of the Act.

3.

In this regard, ld. AR submitted that the assessee filed return for the year under consideration i.e. AY 2025-26 declaring total income of R

The order continues below.

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