KADVABHAI KURJIBHAI VARSANI,RAJKOT vs. THE DEPUTY COMMISSIONER OF THE INCOME TAX, CENTRAL-1, RAJKOT

ITA 125/RJT/2026Status: DisposedITAT Rajkot08 May 2026AY 2024-257 pages
AI SummaryAllowed

What were the facts?

The assessee's appeal pertains to the denial of rebate under Section 87A by the CPC, which was upheld by the CIT(A). The assessee argued that the adjustment made by the CPC went beyond the scope of Section 143(1) and that the CIT(A) failed to consider submissions and evidence.

What did the Tribunal hold?

The Tribunal held that the assessee is eligible for rebate under Section 87A even if the income includes short-term capital gains taxable under Section 111A, provided the total income does not exceed Rs. 7,00,000 and the assessee opted for the new tax regime under Section 115BAC(1A). The denial by the CPC was based on system logic, not statutory mandate.

What were the issues?

Whether rebate under Section 87A is admissible for tax on short-term capital gains under Section 111A for an assessee opting for the new tax regime under Section 115BAC(1A) with total income below Rs. 7,00,000.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “Smc”

Before: Dr. Arjun Lal Saini

For Appellant: Shri Samir Bhuptani, Ld. AR
For Respondent: Shri Gopi Nath Chaubey, Ld. Sr. DR
Hearing: 20/02/2026Pronounced: 08/05/2026

Per, Dr. Arjun Lal Saini, AM:

Captioned appeal filed by the assessee pertaining to Assessment Year 2024-25, is directed against the order passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by the Commissioner of Income Tax, Appeal, ADDL/JCIT (A)-4, Delhi, dated 11.11.2025, which in turn arises out of an order passed by the Centralized Processing Cell (hereinafter referred to as “CPC”) u/s. 143(1) of the Act on 24.02.2025. ITA No. 125/Rjt/2026 – A.Y. 2024-25 Kadv

The order continues below.

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