TaxTMI 
TaxTMI 
2026 (10) TMI 514
X X X X Extracts X X X X
X X X X Extracts X X X X
....assessee visited the office of the Chartered Accountant, who, upon accessing the Income Tax Portal, found the impugned order. It is submitted that only thereafter necessary steps were taken for filing the appeal before the Tribunal and, due to the aforesaid circumstances, the appeal was filed after a delay of 155 days. As per the assessee, the delay was neither deliberate nor intentional and occurred due to circumstances beyond the assessee's control. Accordingly, the assessee has requested condonation of delay for filing the appeal before the Tribunal. 3. We find that the reasons stated by the assessee for seeking condonation of delay fall within the parameters for grant of condonation laid down by the Hon'ble Supreme Court in the case of Collector Land Acquisition, Anantnag vs. MST Katiji and others, reported in 1987 SCR (2) 387. It is well-established that the Rules of procedure are handmaid of justice. When substantial justice and technical considerations are pitted against each other, the cause of substantial justice deserves to be preferred. In the present case, the assessee does not stand to benefit from the late filing of the present appeal. In view of the above and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....In view of the above and on other grounds to be adduced at the time of hearing, the appellant prays that the Intimation as made by the CPC be quashed OR in the alternative the rebate as claimed u/s 87A of the Act be allowed and excess interest be also deleted. 5. The solitary grievance of the assessee is 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. 6. The brief facts of the case are that the assessee is an individual and, for the year under consideration, 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. 29,2....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ealing with similar contentions as raised before us and placing reliance upon the decision of the Coordinate Ahmedabad Bench of the Tribunal, observed as follows: - "9. We have carefully considered the submissions of ld. DR and perused the materials available on record. The short issue before us is whether the assessee whose total income is admittedly below Rs. 7,00,000/- and who has opted for the new regime u/s 115BAC(1A) of the Act is entitled to rebate u/s 87A of the Act in respect of tax arising on long-term capital gain taxable u/s 112 of the Act. 9.1 In the present case, the assessee declared total income of Rs. 6,68,040/-. The said income included long-term capital gain on sale of residential house property taxable u/s 112 of the Act. The rebate u/s 87A of the Act was denied by CPC only on the ground that part of the income was taxable at special rate. The Ld. CIT(A) has upheld the said denial by holding that income taxable under Chapter XII of the Act, including income u/s 112 of the Act, would not be eligible for rebate u/s 87A of the Act. 9.2 We are unable to approve the view taken by the Ld. CIT(A). Section 87A of the Act, as applicable for the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e in accordance with the provisions of section 115BAC(1A) of the Act. On a plain reading of the statutory provisions, there exists no express bar either in section 87A or section 111A for denial of rebate in respect of tax payable on short-term capital gains arising from transfer of listed equity shares taxable at special rates under section 111A. The legislative intent is further clarified by the subsequent amendment proposed in the Finance Bill, 2025, which is prospective in nature and thereby reinforces that no such restriction was in force during the relevant assessment year. The denial of rebate under section 87A by the CPC, Bengaluru, appears to be based solely on system-driven logic and not on any statutory mandate. Moreover, the interpretation adopted by the CIT(A) in upholding such denial is, in our considered view, not in consonance with the plain and unambiguous language of the law as applicable for A. Y. 2024-25. " 9.5 We further note that the Finance Act, 2025 has amended the provisions so as to restrict rebate u/s 87A in respect of income taxable at special rates. The said amendment is applicable prospectively. In our view, if the law already contained such r....