INCOME TAX OFFICER, JHUNJHUNU vs. BANWARI LAL BIDAWATKA, SIKAR

ITA 315/JPR/2026Status: DisposedITAT Jaipur20 August 2026AY 2024-2511 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, while opting for the new tax regime under Section 115BAC(1A). The CPC denied this rebate, but the CIT(A) allowed it. The Revenue appealed this decision.

What did the Tribunal hold?

The Tribunal held that the assessee is entitled to the rebate under Section 87A on STCG. The absence of an express bar in Section 87A or Section 111A, coupled with the prospective nature of subsequent amendments, supports this entitlement.

What were the issues?

Whether rebate under Section 87A is available on short-term capital gains taxable under Section 111A for assessees opting for the Section 115BAC(1A) regime, and whether the Explanatory Memorandum to the Finance Bill 2025 can override statutory provisions.

Which sections of the Income-tax Act were involved?

Section 87A,Section 111A,Section 115BAC(1A),Section 250,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, “SMC” BENCH, JAIPUR

For Appellant: Ms. Aarti Rawat, Addl. CIT
Hearing: 19.08.2026Pronounced: 20.08.2026

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), Bhubaneswar (hereinafter referred to as “Ld. CIT(A)”), dated 15.12.2025 under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

2.

The Revenue has raised the following grounds of appeal:-

P a g e | 2 Banwari Lal Bidawatka

1.

Whether on the facts and circumstances of the case and in law, the Ld. Addl.CIT(A) is justified in allowing the rebate U/s 87A of the Act, on STCG, when rebate U/s 87A of the Act is not available in respect of Income Tax payable on income chargeable to tax on special rates, which includes Short Term Capital

The order continues below.

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