Kapish Hariprasad Poddar Vs ITO (ITAT Nagpur)
Summary: The Income Tax Appellate Tribunal, Nagpur, disposed of two appeals filed by the respective assessees for Assessment Year 2024-25 concerning denial of rebate under Section 87A of the Income-tax Act, 1961 on short-term capital gain included in total income. ITA No. 406/NAG/2026 was directed against the order dated 24.02.2026 framed by the National Faceless Appeal Centre, Delhi (NFAC), arising from the assessment order dated 24.06.2025 passed under Section 143(3) of the Act. ITA No. 414/NAG/2026 was directed against the order dated 17.02.2026 framed by Addl./JCIT(A)-1, Delhi, arising from the assessment order dated 11.09.2025 passed under Section 143(3). In both cases, the assessees had claimed rebate under Section 87A in their returns where total income included short-term capital gain, but the CPC denied the rebate on such short-term capital gain. The Tribunal considered the judicial precedents placed in the assessee’s paper book and particularly followed Pushpa Prakash Misar vs. ITO, ITA No. 741/MUM/2026, order dated 23.03.2026 for AY 2024-25. In that decision, it was held, on a plain reading of the statutory provisions, that there was no express bar either in Section 87A or Section 111A for denial of rebate under Section 87A in respect of tax payable on short-term capital gain arising from transfer of listed equity shares taxable at the special rate under Section 111A. Respectfully following that judicial precedent, the Nagpur Tribunal directed the respective Jurisdictional Assessing Officers to grant the rebate under Section 87A claimed by the assessees. The grounds raised in both appeals were accordingly allowed, and both appeals were allowed. The order was pronounced on 7 August 2026. The issue concerns the interaction between Section 87A and Section 111A for AY 2024-25.
