INCOME TAX OFFICER, JAIPUR vs. MADHU AGARWAL, JAIPUR

ITA 390/JPR/2026Status: DisposedITAT Jaipur20 August 2026AY 2024-259 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). The assessee claimed rebate on STCG, which was initially denied by CPC 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 distinguishing between normal income and special rate income like STCG. The existing law did not restrict this rebate, and the denial by CPC was based on system logic, not statutory mandate.

What were the issues?

Whether rebate under Section 87A is allowable on tax on short-term capital gains taxable under Section 111A, especially when the assessee opts 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),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), Mumbai-07(hereinafter referred to as “Ld. CIT(A)”), dated 23.12.2025 under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

2.

The Revenuehas raised the following grounds of appeal:-

P a g e | 2 Madhu Agarwal

1.

Whether on the facts and circumstances of the case and in law, the Ld. Addi CIT(A)-7, mumbat 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

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 87A

All 81 judgments and leading authorities on Section 87A →

Recent GST High Court judgments

Search GST case law →