ITO Vs. Sanjay Kumar Garg
Parties Involved
Facts Summary
The present appeal was filed by the Revenue against the order passed by the Office of the Commissioner of Income Tax, Appeal Addl./JCIT(A) Nagpur, dated 05.02.2026 under Section 250 of the Income Tax Act, 1961. The appeal concerns the denial of tax rebate under section 87A of the Act on taxes paid on short-term capital gains. The assessee, Sanjay Kumar Garg, filed his return of income for the Assessment Year 2025-26, declaring income under the heads 'Income from Salary', 'Income from Capital Gains', and 'Income from Other Sources', aggregating to a total income of Rs. 6,91,162/-. The Centralised Processing Centre (CPC) processed the return and issued an intimation under section 143(1) on 10.01.2026, disallowing the rebate claimed under section 87A against part of short-term capital gain and raising a demand of Rs. 16,160/-. The ld. CIT(A) allowed the rebate, which led to the present appeal by the Revenue.…
Decision in favour of
Partly Assessee / Partly Revenue
Legal Issues
- 1. Whether the Ld. Addl CIT(A) is justified in allowing the rebate u/s 87A of the Act on STCG, when rebate u/s 87A of the Act, 1961 is not available in respect of Income Tax payable on income chargeable to tax on special rates, which includes Short Term Capital Gain u/s 111A of the Act?
- 2. Whether the order of the Ld. Addl CIT(A) is justified in view of the CBDT Circular No. 13/2025, dated 19.09.2025 which has made it expressly clear that it was never the statutory intent to allow rebate in cases where income is chargeable to tax u/s 115BAC(1) of the Act, 1961 and any such cases where rebate is erroneously claimed are to be rectified?
Judgment Outcome
Decided in favour of Partly Assessee / Partly Revenue.
Precedents Relied Upon
7 precedents cited in this judgement.