ITO Vs Anant Kumar Shah (ITAT Jaipur)
What the Statute Allowed Cannot Be Taken Back Through Rectification — ₹25,000 Rebate on STCG Restored
Summary: The Jaipur Bench of the ITAT has upheld the grant of rebate u/s 87A against tax payable on short-term capital gains u/s 111A for AY 2024-25. The assessee’s total income was ₹6,99,150—barely ₹850 below the statutory threshold of ₹7 lakh—and there was no express restriction in either section 87A or section 111A denying the rebate.
The case had an unusual procedural feature. CPC initially allowed the rebate while processing the return u/s 143(1), but subsequently withdrew it through a rectification order u/s 154. The CIT(A) restored the benefit, and the Revenue carried the matter to the Tribunal.
The assessee, Anant Kumar Shah, filed his return declaring a total income of ₹6,99,150. This included short-term capital gains of ₹1,06,999, long-term capital gains of ₹2,61,914 on the sale of a house and income from other sources of ₹1,32,004, apart from other returned income.
Being a resident individual governed by the new tax regime u/s 115BAC(1A), the assessee claimed the maximum rebate of ₹25,000 u/s 87A.
CPC originally allowed the claim in the intimation u/s 143(1). It thereafter passed an order u/s 154 withdrawing the rebate against the tax attributable to STCG u/s 111A.
