2026 (7) TMI 1150

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....3.2026, which in turn arises out of an order passed by assessing officer u/s. 143(1) of the Act, dated 22.01.2026. 02. Brief facts of the case are that the assessee is an individual who filed her return of income for the Assessment Year 2025-26 declaring a total income of Rs. 5,70,000/-. The returned income comprised income from business or profession and short-term capital gains (STCG) arising from transfer of listed securities taxable under Section 111A of the Income-tax Act, 1961. The assessee opted for the new tax regime under Section 115BAC(1A) of the Act. The total tax liability computed on the returned income was Rs. 16,835/-, consisting of Rs. 9,070/- on normal income and Rs. 7,765/- on STCG taxable under Section 111A of the Act.....

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....ith reference to the total income and the total tax payable thereon. The provision applicable for Assessment Year 2025- 26 grants rebate of 100% of the tax payable, subject to the prescribed monetary limit, where the total income does not exceed Rs. 7,00,000/-. The assessee further submitted that the Finance Bill, 2025 proposed a specific restriction denying rebate under Section 87A of the Act in respect of tax payable on special rate incomes, including income taxable under Section 111A of the Act, with effect from Assessment Year 2026-27. The very fact that such a restriction was introduced prospectively demonstrates that no such restriction existed for Assessment Year 2025-26. The Explanatory Memorandum cannot override the plain language ....