KAVITA PARAS SHAH,RAJKOT vs. ITOW2(2)(1), RAJKOT

ITA 732/RJT/2026Status: DisposedITAT Rajkot10 July 2026AY 2025-20265 pages
AI SummaryAllowed

What were the facts?

The assessee claimed a rebate under Section 87A on her total tax liability, including tax on short-term capital gains (STCG) taxable under Section 111A, for AY 2025-26. The CPC restricted the rebate to only normal income tax, denying it on STCG, without prior notice.

What did the Tribunal hold?

The tribunal held that for AY 2025-26, Section 87A did not restrict rebate on tax payable under Section 111A, as the restriction was introduced prospectively from AY 2026-27. The adjustment made by the CPC without notice was also found to be procedurally flawed.

What were the issues?

Whether the rebate under Section 87A is available on tax on short-term capital gains taxable under Section 111A for AY 2025-26, and if adjustments under Section 143(1) can be made without prior notice.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Shri Kavita P. Shah, Assessee
For Respondent: Shri Ganesh Iyer, Ld. Sr. DR
Hearing: 06/07/2026Pronounced: 10/07/2026

Per, Shri Sonjoy Sarma, JM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2025-26, is directed against the order under section 250 of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’] passed by Commissioner of Income Tax(Appeal) [hereinafter referred to as ‘Ld.CIT(A)’], dated 16.03.2026, which in turn arises out of an order passed by assessing officer u/s. 143(1) of the Act, dated 22.01.2026. Kavita Parash Shah

02.

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