GURMINDER SINGH,AMBALA CITY vs. INCOME TAX OFFICER WARD-2, AMBALA, AMBALA CANTT.
1
IN THE INCOME TAX APPELLATE TRIBUNAL
“B” BENCH, CHANDIGARH
PHYSICAL HEARING
BEFORE HON’BLE SHRI LALIET KUMAR, JM
AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आयकरअपीलसं./ ITA No.887/CHANDI/2025
(िनधाŊरणवषŊ / Assessment Year: 2024-25)
Sh. Gurminder Singh
H.No.1998, Sec.9, Urban Estate
Ambala City – 134003
बनाम/ Vs.
ITO Ward-2
Ambala 133001
̾थायीलेखासं./जीआइआरसं./PAN/GIR No. CIDPS-7267-J
(अपीलाथŎ/Appellant)
:
(ŮȑथŎ / Respondent)
अपीलाथŎकीओरसे/ Appellant by :
Shri Gurminder Singh (Assessee-in-person)
ŮȑथŎकीओरसे/Respondent by :
Smt. Moatenla (JCIT) – Ld. Sr. DR
सुनवाईकीतारीख/Date of Hearing
:
17-11-2025
घोषणाकीतारीख /Date of Pronouncement
:
10-12-2025
आदेश / O R D E R
Manoj Kumar Aggarwal (Accountant Member)
The sole grievance of the assessee in captioned appeal for Assessment Year (AY) 2024-25 is quantum of rebate u/s 87A. The impugned order has been passed by learned Addl. / Joint Commissioner of Income Tax (Appeals)-1, Nagpur [CIT(A)] on 27-05- 2025 in the matter of an intimation issued by CPC u/s 143(1) on 23-03- 2025. Having heard rival submissions, the appeal is disposed-off as under.
From case records, it emerges that the assessee has earned following income during this year: - No. Particulars Amount (Rs.) 1. Equity Long Term Capital Gains 1,03,264/- 2. Debt Long Term Capital Gains with indexation 1,19,020/- 3. Equity Short Term Capital Gains 2,247/- 4. Debt Short Term Capital Gains 7,607/- 5. Income from other sources 3,13,177/- Total 5,45,315/- Agricultural Income (for rate purposes) 8,47,263/-
Against computed tax of Rs.27,586/-, the assessee claimed rebate u/s 87A for Rs.25,000/- and tax payable after rebate was shown to be Rs.2,586/-. However, CPC restricted the rebate u/s 87A to the extent of Rs.3,119/- which enhanced the tax payable after rebate to Rs.24,467/-.
Finally, a demand to Rs.25,710/- was raised by CPC against the assessee. Aggrieved, the assessee preferred further appeal.
3. The Ld. CIT(A) held that in terms of provisions of Sec.112A(6), rebate u/s 87A would be allowed from Income Tax on total income as reduced by tax payable on capital gains as referred to in sub-section (1) of s.112A. Thus, this rebate would not be allowed on tax computed on Long-Term Capital Gains. Aggrieved, the assessee is in further appeal before us.
4. We find that sub-section (6) of s.112A prohibit rebate u/s 87A on capital gains as referred to in sub-section (1) of s.112A. The clause (ii) of s.112A(1) refer to capital gains arising from transfer of a Long-Term
Capital Asset being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust. This clause thus refers only to Long-Term Equity Capital Gains and not to Long-Term Debt Capital
Gains. The debt Long Term capital gains are governed by the provisions of s.112 and as such there is no such bar to claim rebate u/s 87A on this income. The computation of tax payable would show that the assessee has computed tax of Rs.23,804/- (at the rate of 20% on Debt LTCG of Rs.1,19,020/-). The tax on other normal income
(excluding equity LTCG) has been computed at Rs.3,456/- (i.e.,
Rs.337/- + Rs.3,119/-). Both these items well exceed rebate threshold limit of Rs.25,000/-. This being so, the assessee would be eligible to claim full rebate of Rs.25,000/-. We order so. The CPC is directed to re-compute the tax payable by the assessee.
5. The appeal stand allowed.
Order pronounced on 10th December, 2025. - - (LALIET KUMAR) (MANOJ KUMAR AGGARWAL)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated:
आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to :
1. अपीलाथŎ/Appellant
2. ŮȑथŎ/Respondent
3. आयकरआयुƅ/CIT
4. िवभागीयŮितिनिध/DR
5. गाडŊफाईल/GF