Jayshreeben Jayantibhai Palsana Vs ITO (ITAT Ahmedabad)
The case of Jayshreeben Jayantibhai Palsana vs ITO before the Income Tax Appellate Tribunal (ITAT), Ahmedabad, arose from an appeal against the order of the Commissioner of Income Tax (Appeals)-2, Delhi [CIT(A)], dated 15.04.2025. The appeal concerned the assessee’s eligibility to claim rebate under Section 87A of the Income-tax Act, 1961, against short-term capital gains (STCG) taxed under Section 111A, while being assessed under the new tax regime under Section 115BAC(1A).
The assessee, an individual, originally filed her return of income for A.Y. 2024–25 declaring Rs.4,27,635/-. This comprised Rs.3,79,559/- as STCG taxable at 15% under Section 111A, Rs.38,840/- as long-term capital gains (LTCG) under Section 112A, and Rs.9,236/- as income from other sources. A revised return was later filed within the permissible period, opting for the new regime under Section 115BAC(1A). Under this revised computation, tax of Rs.13,320/- was payable on STCG. Since her total income was below Rs.7,00,000, she claimed rebate under Section 87A.
However, the Centralised Processing Centre (CPC), Bengaluru, disallowed the rebate claim while processing the return under Section 143(1). This resulted in a demand of Rs.15,820/- including interest and cess.
Proceedings Before CIT(A)
Before the CIT(A), the assessee argued that:
