BASTY KESHAVA SHENOY,MANGALORE vs. INCOME TAX OFFICER WARD 1(1), MANGALORE

ITA 3134/BANG/2025Status: DisposedITAT Bangalore26 May 2026AY 2024-259 pages
AI SummaryAllowed

What were the facts?

The assessee, opting for the new tax regime, claimed a rebate under Section 87A on their total income which was below Rs. 7,00,000. However, the CPC restricted the rebate, denying the portion attributable to short-term capital gains taxable under Section 111A.

What did the Tribunal hold?

The Tribunal held that Section 87A, as applicable for the year, refers to 'total income' and does not contain an express restriction denying rebate on income taxable under Section 111A. The amendment in Finance Act, 2025, was noted as prospective.

What were the issues?

Whether rebate under Section 87A is allowable on short-term capital gains taxable under Section 111A when the total income is below the threshold, in the absence of an express statutory prohibition.

Which sections of the Income-tax Act were involved?

Section 87A,Section 111A,Section 115BAC(1A),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 06.10.2025. 2. The assessee in the memo of appeal has raised 12 grounds of appeal along with sub-grounds 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. 6,25,580/- only. The income compr

The order continues below.

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