Pramod Kumar Dubey Vs ITO (ITAT Agra)
The Income Tax Appellate Tribunal (ITAT), Agra allowed the assessee’s appeal against the order of the Addl./JCIT(A)-2, Delhi, arising from an intimation issued under Section 143(1) of the Income-tax Act, 1961 by the Centralised Processing Centre (CPC), Bengaluru for Assessment Year (AY) 2024-25. The sole issue before the Tribunal was whether the assessee was entitled to rebate under Section 87A on tax payable on Short-Term Capital Gains (STCG) taxable under Section 111A.
The assessee had filed the return under Section 139(1) declaring total income of ₹6,27,260, comprising salary income, long-term capital gains, short-term capital gains, and income from other sources, and had opted for the new tax regime. Since the total income did not exceed ₹7 lakh, the assessee claimed a rebate of ₹25,000 under Section 87A, including ₹22,087 relating to tax on STCG under Section 111A. The CPC, while processing the return, denied the rebate on STCG and raised a tax demand.
The Tribunal observed that there is no restriction in Section 111A denying rebate under Section 87A on short-term capital gains, and Section 87A itself also contains no prohibition against allowing such rebate. It held that in the absence of any restriction or prohibition in either provision, the assessee would be entitled to rebate under Section 87A.
