MARIA JOHN,WAYANAD vs. INCOME TAX OFFICER, WARD 1, KALPETTA
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.
Held
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/-.
Key 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/-.
Sections Cited
87A, 143(1), 112
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM
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.
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
2 ITA No. 400/Coch/2025 Maria John u/s. 143(1) of the Income Tax Act, 1961 (for short, 'the Act') vide intimation dated 28/02/2025 disallowing rebate u/s. 87A of the Act.
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.
Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal.
It is contended that the assessee is entitled for rebate u/s. 87A of the Act.
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/-
I have heard rival submissions and perused the material on record.
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
3 ITA No. 400/Coch/2025 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.
In the result, the appeal filed by the assessee is dismissed.
Order pronounced in the open court on 31st July, 2025.
Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 31st July, 2025 vr/- Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order
Assistant Registrar ITAT, Cochin
