MARIA JOHN,WAYANAD vs. INCOME TAX OFFICER, WARD 1, KALPETTA

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ITA 400/COCH/2025Status: DisposedITAT Cochin31 July 2025AY 2024-25Bench: SHRI INTURI RAMA RAO (Accountant Member)3 pages
AI SummaryDismissed

What did the Tribunal hold?

The CIT(A) confirmed the action of the CPC, holding that rebate under section 87A was not allowable on long-term capital gains, referencing section 112. The Tribunal noted that section 87A provides rebate only if total income does not exceed Rs. 5,00,000/-.

What were the facts?

The assessee filed a return of income for AY 2024-25 disclosing a total income of Rs. 7,04,952/-, which included long-term capital gain and income from other sources. The CPC processed the return under section 143(1) and disallowed rebate under section 87A.

What were the issues?

Whether the assessee is entitled to a rebate under section 87A of the Income Tax Act, 1961, when the total income exceeds Rs. 5,00,000/-.

Which sections of the Income-tax Act were involved?

Section 87A,Section 143(1),Section 112

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH

Before: SHRI INTURI RAMA RAO, AM

For Respondent: Smt. Leena Lal, Sr. DR
Hearing: 02.06.2025Pronounced: 31.07.2025

This appeal filed by the assessee is directed against the order of the ADDL/JCIT(A)-3, Delhi [CIT(A)] dated 28.03.2025 for Assessment Year (AY) 2024-25.

2.

Brief facts of the case are that the assessee is an individual. Return of income for the AY 2024-25 was filed on 30/07/2024 disclosing total income of Rs. 7,04,952/- including long term capital gain of Rs. 5,55,497/- and also income from other source of Rs.1,49,455/-. The said return of income was processed by the CPC

3.

Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the CPC by holding that rebate u/s. 87A was not allowable in respect of income declared on long term capital gain by making reference to the provisions of section 112 of the Act.

4.

Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal.

5.

It is contended that the assessee is entitled for rebate u/s. 87A of the Act.

6.

The Ld.DR supporting the order of the Ld. CIT(A) and submitted that assessee is not entitled for rebate u/s. 87A in view of the specific provisions of the Act as the returned income was above Rs.7,00,000/-

7.

I have heard rival submissions and perused the material on record.

8.

The issue, that arises for my consideration is whether the assessee is entitled for rebate u/s. 87 of the Act or not. On mere perusal of the provisions of section 87A, it would reveal that the assessee whose total income does not exceeds Rs. 5,00,000/- shall be entitled to tax rebate equivalent to 100% of such income tax or an Maria John amount of Rs. 12,500/- whichever is lower. In the present case, undisputedly, returned income of the assessee exceeds Rs.5,00,000/- hence, assessee is not entitled for rebate u/s. 87A of the Act. I do not find any merit in the appeal filed by the assessee, therefore, the same stands dismissed.

9.

In the result, the appeal filed by the assessee is dismissed.

Order pronounced in the open court on 31st July, 2025.

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