Update on Rebate u/s 87A: Bombay High Court Relief
The Chamber of Tax Consultants filed a PIL before the Hon’ble Bombay High Court, raising concerns over the inability of assessees to claim the rebate under Section 87A on special incomes while filing ITRs for A.Y. 2024-25. This issue arose due to changes in the department’s utility software after 5th July 2024, particularly under the new tax regime.
In a significant development, the Court observed that:
The rebate u/s 87A is intrinsically tied to the total income and tax liability of taxpayers.
Such substantive rights cannot be negated by procedural changes like alterations in filing software.
Interim Relief Granted:
The CBDT has been directed to extend the due date for filing income tax returns for A.Y. 2024-25 from 31st December 2024 to at least 15th January 2025.
A notification under Section 119 of the Income Tax Act is to be issued promptly, enabling taxpayers to file belated/revised returns and claim the rebate.
The PIL is listed for final disposal on 9th January 2025.
Case Reference: The Chamber of Tax Consultants vs. DGIT (Systems) & Ors. [PIL (L) No. 32465 of 2024]
The copy of the order is as under:
