INCOME TAX OFFICER, JAIPUR vs. ANITA SHARMA, JAIPUR

ITA 1344/JPR/2026Status: DisposedITAT Jaipur21 October 2026AY 2024-254 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the rebate under section 87A of the Act is allowable on the tax computed on short-term capital gain offered to tax under section 111A, where the assessee has opted for the tax regime under section 115BAC for Assessment Year 2024-25. The Tribunal noted that this issue was covered in favour of the assessee by the decision of a coordinate Bench in ITA No. 1412/JPR/2025 dated 25.06.2026, which considered identical facts and allowed the rebate. The Tribunal also found support in the decision of the Ahmedabad Bench of the Tribunal in Jayshreeben Jayantibhai Palsana vs. ITO. Since the Revenue could not present any contrary decision from a higher judicial authority and was unable to distinguish the precedents, the Tribunal respectfully followed the settled view. The Addl./JCIT(A)'s order allowing the rebate was found to be in accordance with law and required no interference. The appeal filed by the Revenue was dismissed.

What were the facts?

The assessee, Anita Sharma, filed her return of income for Assessment Year 2024-25, opting for the tax regime under section 115BAC of the Income Tax Act, 1961. She claimed a rebate of Rs. 15,703 under section 87A against the tax computed on short-term capital gains (STCG) taxable under section 111A. The Assessing Officer (AO) at the Centralized Processing Centre (CPC), through an intimation under section 143(1) dated 11.03.2025, disallowed this rebate. The assessee's subsequent rectification request under section 154 was also rejected. The Additional/Joint Commissioner of Income Tax (Appeals) [Addl./JCIT(A)] allowed the assessee's appeal, directing the AO to grant the rebate. The Revenue has appealed this order before the Income Tax Appellate Tribunal (ITAT).

What were the issues?

1. Whether, on the facts and in law, the Ld. Addl CIT(A) was justified in allowing the rebate under section 87A of the Act on STCG, when rebate under section 87A is not available for income chargeable to tax at special rates, including STCG under section 111A? 2. Whether, on the facts and in law, the order of the Ld. Addl CIT(A) is justified in light of CBDT Circular No. 13/2025, dated 19.09.2025, which clarifies that the statutory intent was not to allow rebate in cases where income is chargeable under section 115BAC(1), and such erroneous claims should be rectified? Assessee's Contention: The assessee relied on the decision of the Ahmedabad Bench of the Tribunal in Jayshreeben Jayantibhai Palsana vs. ITO (ITA No. 1014/Ahd/2025), which allowed the rebate under section 87A for AY 2024-25 in identical circumstances. Revenue's Contention: The Revenue was unable to cite any contrary decision from the jurisdictional High Court or the Supreme Court, nor could it distinguish the precedent relied upon by the assessee. The Revenue also referred to CBDT Circular No. 13/2025.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘SMC’ BENCH, JAIPUR

Before: Shri Kuldip Singh & Shri Prakash

PER : PRAKASH, ACCOUNTANT MEMBER:-

1.

This appeal by the Revenue is directed against the order of the learned Additional/Joint Commissioner of Income Tax (Appeals)-1, Coimbatore, [hereinafter referred to as “Addl./JCIT(A)”] dated 16.03.2026 for the Assessment Year 2024-25 arising out of the rectification order dated 07.01.2026 [for the intimation dated 11.03.2025] passed by the Assessing Officer at the Centralized Processing Centre (hereinafter referred to as “the AO

I.T.A No. 1344/JPR/2026 Page No 2 Anita Sharma

at the CPC”) under section 154 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”),

2.

The grounds of appeal raised by the Revenue before us in the memorandum of appeal in

The order continues below.

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