JIGNESH HARJIVANBHAI CHIKANI,RAJKOT vs. THE INCOME TAX OFFICER, CPC BENGALURU

ITA 796/RJT/2025Status: DisposedITAT Rajkot16 April 2026AY 2024-20259 pages
AI SummaryAllowed

What were the facts?

The assessee claimed a rebate under Section 87A of the Income Tax Act, 1961, for AY 2024-25, as their total income was below Rs. 7,00,000. The CPC disallowed this claim, stating it was not permissible on income taxable under Section 111A. The CIT(A) upheld this denial.

What did the Tribunal hold?

The Tribunal held that there is no statutory bar in Section 87A or Section 111A preventing the allowance of rebate against tax computed on short-term capital gains. The denial by CPC was based on system logic, not statutory mandate.

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, and whether CPC can deny such a claim through automated processing.

Which sections of the Income-tax Act were involved?

Section 87A,Section 111A,Section 115BAC(1A),Section 143(1)(a),Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench,

Before: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinha

Hearing: 03/02/2026Pronounced: 16/04/2026

Per Dr. Dinesh Mohan Sinha, 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 Learned Commissioner of Income Tax (Appeals), Addl./JCIT(A)-3, Bengaluru, [in short, Ld. CIT(A)], dated 27.10.2025, which in turn arises out of assessment order Jignesh Harjivanbhai Chikani

passed

The order continues below.

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