Income Tax Rebate Issue: Bombay High Courts verdict delayed again

The Bombay High Court verdict delayed again in respect of Income tax rebate issue.

The section 87A tax rebate issue is of particular interest and dispute among taxpayers. The issue grew so heated that several court cases were filed challenging the tax department’s decision to refuse individuals eligible for the 87A tax rebate. The tax department appears to have taken the position that if the ITR includes special rate profits such as short-term capital gains income, the ITR cannot claim the 87A tax rebate. This stance, however, was not properly communicated to taxpayers, and changes were introduced to the ITR processing software unexpectedly on July 5, 2024, resulting in the 87A tax rebate mess.

Later, CBDT extended the revised and belated ITR filing deadline to January 15, 2025 from December 31, 2024, with updated ITR utility sothat taxpayers can claim this rebate.

This matter of rebate went and addressed before Bombay High Court for a decision that will align in the favour of all. This matter is currently under hearing and people are waiting for the final verdict of Bombay High Court.

The Judgment read as follows:

1. Heard arguments.

2. Reserved for orders/judgment.

3. The learned counsel for the parties agree to submit a short synopsis of their arguments latest by 20th January 2025.

4. The learned Additional Solicitor General states that the present arrangement under the orders of this Court would continue until the final disposal of this petition.

For Official Judgment Download PDF Given Below: