Nagpur ITAT issues rulings on Section 115BBE tax rates and Section 87A rebates

The Nagpur Bench of the Income Tax Appellate Tribunal (ITAT) has issued two significant rulings regarding tax application and rebates.

In the case of Vimal Pramodkumar Mishra, the Tribunal ruled that the amendment to Section 115BBE, which increased the tax rate from 30% to 60% plus surcharge, cannot be applied retrospectively. The ruling establishes that transactions occurring before April 1, 2017, must be taxed at the previous 30% rate. This decision addressed disputed cash deposits for the 2016-17 fiscal year.

In a separate matter involving Smt. Bina Pradeep Malli, the ITAT addressed the denial of the Section 87A rebate by the Central Processing Centre (CPC). The dispute arose when the CPC processed a tax return for the 2024-25 assessment year but refused to grant the rebate due to the presence of Short-Term Capital Gains taxable under Section 111A. The Tribunal directed the Assessing Officer to grant the rebate, affirming that an individual should not be denied the Section 87A rebate simply because their income includes such capital gains.