Thejaswini Jakkaraju Vs ITO (ITAT Bangalore)
87A Rebate cannot be denied merely on revised return – Tribunal Sides with Taxpayer; Failure to claim rebate u/s 87A in the original return is an error that can be corrected through a revised return & denial of such rebate in processing is not valid
Bangalore ITAT considered denial of rebate u/s 87A on technical grounds. Assessee had filed original return of income on 22.06.2024 under the old regime, which was processed u/s 143(1) on 30.06.2024 without adjustment. Subsequently, on 11.07.2024, she filed a revised return claiming rebate u/s 87A of ₹21,350. CPC processed the revised return on 24.09.2024 but denied the rebate. CIT(A), while condoning delay in filing appeal, dismissed the case holding that switching regimes is not an error or omission justifying a revised return.
Assessee argued before Tribunal that omission to claim rebate u/s 87A in the original return constituted an error/omission within the meaning of law. It was further contended that rebate u/s 87A is available under both new & old tax regimes as per s.115BAC, & hence the denial was unjustified. It was also pointed out that s.143(1)(a) does not permit CPC to make adjustments on account of 87A rebate denial.
