IT Act – Rebate of Section 87A – Online filing of Return – PIL by Chamber of Tax Consultants
The issue that requires our consideration is whether the respondents are justified in modifying their utility, whereby an assessee is debarred at the threshold from making a rebate claim under Section 87A while online uploading income tax return.
IT Act does not contain any such prohibition and therefore, it cannot be introduced by simply tweaking the utility.
Online utility for filing income tax return has denied the benefit of claiming a rebate under Section 87A of the Income Tax Act for the assessment years 2024-2025.
The submission was that the IT Department should make the utilities for online filing of return of income flexible so as to allow an assessee to self-compute income and there should not be any restriction on making any claim whatsoever.
Technology is meant to eliminate the interface between the tax authority and the assesses. However, this cannot eliminate an assessee’s right to raise a claim for some benefit.
Direction to the IT Department to modify the utilities for filing of income tax return immediately thereby allowing assesses to claim rebate under Section 87A of IT Act in their return for the assessment year 2024-25.
Judgment dated 24.1.2025 of the High Court of Bombay (OS) in Public Interest Litigation (L) No.32465 of 2024 of Chamber of Tax Consultants and others Vs. Union of India
