SHEVGOOR NAMRATHA KAMATH,BAJPE vs. INCOME TAX OFFICER, WARD-2(1), MANGALURU

ITA 3054/BANG/2025Status: DisposedITAT Bangalore26 May 2026AY 2024-2510 pages
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What were the facts?

The assessee, an individual, opted for the new tax regime under section 115BAC(1A) and declared a total income below Rs. 7,00,000. This income included long-term capital gains taxable under section 112. The CPC denied the rebate under section 87A, which was upheld by the CIT(A), stating it's not available for income taxed at special rates.

What did the Tribunal hold?

The Tribunal held that section 87A rebate is available for income taxable under section 115BAC(1A) even if it includes long-term capital gains taxable under section 112, as there is no express statutory bar for the assessment year in question. The subsequent amendment by the Finance Act, 2025, restricting this rebate, is prospective.

What were the issues?

Whether rebate under section 87A is allowable on long-term capital gains taxable under section 112 when the assessee opts for the new tax regime under section 115BAC(1A) and total income is below Rs. 7,00,000.

Which sections of the Income-tax Act were involved?

Section 87A,Section 115BAC(1A),Section 112,Section 112A(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘SMC’ BENCH, BANGALORE

Before: SHRI WASEEM AHMED & SHRI SOUNDARARAJAN K

For Respondent: Shri Ganesh R Ghale, Standing Counsel for Dept
Hearing: 07.05.2026Pronounced: 26.05.2026

PER WASEEM AHMED, ACCOUNTANT MEMBER:

This appeal has been instituted by the assessee against the order of the Ld. CIT(A) passed u/s 250 of the Act dated 08.10.2025. 2. The assessee in the memo of appeal has raised 6 grounds of appeal which we for the sake of brevity and convenience, are not inclined to reproduce here. The grounds raised by the assessee are interconnected and pertains to denial of rebate u/s 87A of the Act.

3.

The brief facts of the case are that the assessee is an individual who filed her ROI for the year the captioned AY offering an income to taxation for Rs. 6,68,040/- only. The income comprised of business inco

The order continues below.

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