SARIKABEN GOPALBHAI POLEKAR,SURAT vs. ITO, WARD 1, BARDOLI

ITA 997/SRT/2025Status: DisposedITAT Surat03 June 2026AY 2024-254 pages
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What were the facts?

The assessee claimed a rebate under Section 87A against tax payable on Long Term Capital Gains (LTCG) while opting for the new tax regime under Section 115BAC. The CPC/AO denied this rebate, stating it was not permissible against LTCG.

What did the Tribunal hold?

The Tribunal held that Section 87A does not explicitly bar claiming rebate against LTCG, and the interpretation of Section 112A(6) allows for such a rebate when the total income includes LTCG. Therefore, the denial of the rebate was incorrect.

What were the issues?

Whether rebate under Section 87A is allowable against tax on Long Term Capital Gains under the new tax regime, and if interest under Sections 234B and 234C was correctly levied.

Which sections of the Income-tax Act were involved?

Section 87A,Section 112,Section 115BAC,Section 112A(6),Section 143(1),Section 234B,Section 234C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT ‘SMC’ BENCH, SURAT

For Appellant: Shri Darshit J Naik, CA
For Respondent: Shri Ajay Uke, Sr. DR
Hearing: 26.03.2026Pronounced: 03.06.2026

PER : SUCHITRA KAMBLE, J M:

The appeal filed by the assessee is against the order passed by the Learned Commissioner of Income Tax (Appeals), ADDL/JCIT(A)-4, [in short “Ld. CIT(A)”], Bengaluru, dated 19.08.2025 for the Assessment Year (in short “AY”) 2024-25. 2. The assessee has raised the following grounds of appeal: “) The Appellant objects to the erroneous demand of Rs. 30,880/- determined vide intimation u/s 143(1). 2) The Appellant objects to non-grant of rebate in the intimation u/s 143(1) while computing the Total Tax payable by the Appellant. 3) Both lower authorities erred in not granting rebate u/s 87A of the Act of Rs. 25,000/- claimed against tax payable on long term capital gains u/s 112, even though the Act

The order continues below.

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