DEV MARLECHA,MUMBAI vs. INCOME TAX DEPARTMENT , CPC, BENGALURU

ITA 96/MUM/2026Status: DisposedITAT Mumbai24 June 2026AY 2024-256 pages
AI SummaryAllowed

What were the facts?

The assessee claimed a tax rebate under Section 87A for AY 2024-25. The CPC denied this rebate, stating it was not applicable to income taxable at special rates like STCG under Section 111A, even when opting for the new tax regime under Section 115BAC(1A). The CIT(A) upheld this denial.

What did the Tribunal hold?

The Tribunal held that the assessee is eligible for the rebate under Section 87A as there is no express bar in Section 87A or Section 111A for AY 2024-25. The prospective amendment in Finance Bill 2025 supports this interpretation, and system-based denials cannot override statutory rights.

What were the issues?

Whether a resident individual opting for the new tax regime (Section 115BAC(1A)) is eligible for rebate under Section 87A on tax payable on short-term capital gains (Section 111A) for AY 2024-25.

Which sections of the Income-tax Act were involved?

Section 87A,Section 111A,Section 115BAC(1A),Section 112A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES, MUMBAI

Before: HON’BLE NARENDER KUMAR CHOUDHRY

Pronounced: 24.06.2026

PER NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER:

This appeal has been preferred by the Assessee against the order dated 31.10.2025, impugned herein, passed by the Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2024-25. ITA 96/MUM/2026 DEV MARLECHA

2.

In the instant case, the Assessee had claimed the tax rebate of Rs.25,00,000/- by filing his return of income on dated 13.01.2025, which was processed vide intimation dated 28

The order continues below.

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