ITA 1540/BANG/2026
Parties Involved
Facts Summary
The assessee, Syed Kabeer Hussain, filed an appeal against the order dated 21.08.2025 passed by the Additional/Joint Commissioner of Income Tax (Appeals), Udaipur, for the assessment year 2024-25. The appeal was filed after a delay of 155 days, and the assessee sought condonation of delay, which was granted by the Tribunal. The assessee's primary grievance was against the denial of rebate under section 87A on account of long-term capital gains earned by the assessee, which is taxable under section 112 of the Act. The assessee filed his return of income on 26.10.2024, declaring a total income of Rs. 5,21,940/-, which comprised income of Rs. 37,500/- from business, long-term capital gains of Rs. 4,61,900/- and income from other sources of Rs. 22,539/-. The assessee computed tax payable under section 140A of the Act at Rs. 21,770/-, which was deposited on 24.10.2024, after claiming a rebate of Rs. 25,000/- under section 87A of the Act. The return filed by the assessee was processed under section 143(1) of the Act after denying the rebate claimed by the assessee under section 87A of the Act. Accordingly, tax payable was computed at Rs. 29,202/- considering the self-assessment tax paid by the assessee.…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the assessee is entitled to rebate under section 87A of the Act in respect of tax payable on long-term capital gain taxable u/s 112 of the Act?
- 2. Whether the amendment brought by Finance Act, 2025 restricting the rebate in case of income taxable at a special rate, is applicable to the year under consideration?
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
3 precedents cited in this judgement.