Ratika Mittal Vs ITO (ITAT Jaipur)
ITAT Jaipur considered two appeals involving the common issue of whether the CPC, while processing returns under Section 143(1) of the Income Tax Act, 1961, could disallow rebate under Section 87A where the assessees had earned Short Term Capital Gains taxed at a concessional rate. The CPC had treated the rebate claim as an impermissible double benefit because the assessees had already received concessional taxation on their Short Term Capital Gains. The Tribunal observed that entitlement to Section 87A rebate in circumstances where Short Term Capital Gains had been taxed at a concessional rate was a matter of debate. It held that the CPC, while processing the returns under Section 143(1), had no power to make such adjustments on the disputed issue. Consequently, the Tribunal found that the CPC lacked jurisdiction to make the impugned adjustments and ordered deletion of the additions. Both appeals were allowed. The order was pronounced under Rule 34 of the ITAT Rules, 1963, on 08.04.2026.
FULL TEXT OF THE ORDER OF ITAT JAIPUR
The captioned appeals havebeen preferred by the two different assessees against the separate orders o f Ld. Commissioner of Income Tax (Appeals) [hereinafter referred to as “Ld. CIT(A)”] dated 02.12.2025 and 10.11.2025 respectively u/s 250 of the Income Tax Act, 1961 (in short “Act”).
