New Delhi, Aug. 26 -- The Income Tax Appellate Tribunal (ITAT), Jaipur Bench, has ruled in favour of a taxpayer who was denied a Section 87A rebate on tax payable on short-term capital gains (STCG) under Section 111A of the Income Tax Act. The Tribunal held that, for Assessment Year (AY) 2024-25, the law did not contain an express restriction preventing the rebate from being applied to such special-rate income.

The ruling came in the case of Income Tax Officer v. Madhu Agarwal, ITA No. 390/JPR/2026. The order was pronounced on 20 August 2026 by the Jaipur Bench comprising Accountant Member Annapurna Gupta and Judicial Member Kuldip Singh.

The dispute arose after the Centralised Processing Centre (CPC), while processing Agarwal's income-...