SIDDHI CHHAJED, RAJNANDGAON,RAJNANDGAON vs. INCOME TAX OFFICER WARD RAJNANDAON, RAJNANDGAON

The captioned appeals preferred by the assessee emanates from the respective orders of the Ld.CIT(Appeals)/NFAC, dated 21.11.2025 & 17.10.2025 for the assessment year 2024-25 as per the grounds of appeal on record.

Both the parties herein conceded that since the facts and issues involved in these appeals are absolutely similar and identical, therefore, the cases may be taken up together and dispose of vide this consolidated order.

The common grievance raised by the assessee in both these appeals is that the exemption u/s.87A r.w. Clause (a) of the Income Tax Act, 1961 (for short ‘the Act’) has been denied in the assessment year 2024-25. That in for A.Y.2024-25, the exemption claimed u/s. 87A of the Act against short term capital gains was Rs.25,000/- and in A.Y.2024-25, the exemption claimed u/s. 87A of the Act against short term capital gains was Rs.19,192/-.

During the First Appellate proceedings, the Ld. CIT(Appeals)/NFAC had upheld the addition made by the CPC/A.O on the technical ground of method of computation. The Department has not denied the fact that the 3 Titiksha Chhjed & Siddhi Chhajed Vs. ITO, Ward-Rajnandgaon & 832/RPR/2025 assessee in her return of income had declared income below Rs.7 lakhs. That so far as the assessee viz. Titiksha Chhajed is concerned, she had filed her return of income declaring total income at Rs.6,87,370/-. Similarly, the assessee viz. Siddhi Chhajed had filed her return of income declaring total income at Rs.6,49,360/-. The clause (a) w.e.f. 01.04.2024 of Section 87A of the Act mandates as follows: “87A. An assessee, being an individual resident in India, whose total income does not exceed five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of twelve thousand and five hundred rupees, whichever is less: [Provided that where the total income of the assessee is chargeable to tax under sub-section (1A) of section 115BAC, and the total income— (a) does not exceed 3[seven] hundred thousand rupees, the assessee shall be entitled to a deduction from the amount of income-tax (as computed before allowing for the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to one hundred per cent of such income-tax or an amount of 4[twenty-five] thousand rupees, whichever is less;”