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[Cites 6, Cited by 0]

Income Tax Appellate Tribunal - Ahmedabad

Vatva Industries Association ... vs I.T.O. Ward 2 Exemption , Ahmedabad on 25 February, 2026

आयकर अपीलीय अिधकरण,अहमदाबाद   ायपीठ 'एस.एम.सी',अहमदाबाद ।
        IN THE INCOME TAX APPELLATE TRIBUNAL
               "SMC" BENCH, AHMEDABAD


                       ी संजय गग,     ाियक सद   एवं
                     अ पूणा गु#ा, लेखा सद
                                      ]
                                            के सम'।
             Before Shri Sanjay Garg, Judicial Member And
                 Annapurna Gupta, Accountant Member

                   आयकर अपील सं /ITA No.760/Ahd/2025
                   िनधारण वष /Assessment Year : 2020-21
     Vatva Industries Association        The I.T.O.
     Charitable Trust             बनाम/ Ward-2 Exemption
     Phase-I,                     v/s. Ahmedabad - 380 015
     Nr. Old Nirma
     B/h. SBI Vatva
     Ahmedabad - 382 445
      थायी ले खा सं . / PAN: AAATV 1541 M

          (अपीलाथ*/ Appellant)                    (+,यथ*/ Respondent)

     Assessee by :                        Shri Jainish Parikh, AR
     Revenue by :                         Shri Suresh Chand Meena, Sr.DR

         सुनवाई की तारीख/ Date of Hearing      :           19/02/2026
         घोषणा की तारीख / Date of Pronouncement:           25/02/2026

                              आदे श/O R D E R

Per Sanjay Garg, Judicial Member:

The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as 'CIT(A)'] dated 12/02/2025 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for the Assessment Year (AY) 2020-21.

2. In this appeal, the assessee had alleged that there was a calculation mistake on the part of the CPC while assessing the income of the assessee. In ITA No.760/Ahd/2025 Vatva Industries Association Charitable Trust vs. ITO Asst. Year : 2020-21 2 this regard, the Tribunal had sought clarification through the Ld. DR from the AO/CPC, in response to which the following reply has been received:

"2. In this case, earlier para wise reply in the case of Vatva Industries Association Charitable Trust bearing ITA NO, 760/Ahd/2025 for AY 2020-21 was forwarded on 21.11.2025. As regards to the query to provide explanation as to why the calculation in the schedules and the final calculation of Income does not match, it was mentioned that a ticked has been raised to CPC to provide the solution which was awaited. Now, CPC has given the reason for demand. Revised comments after considering reply of CPC is as under:
       Sl.No. Objection                    Remark
       1.     The AO to recheck the        On perusal of records, it is noticed that the
              calculation made by the      calculation made by the CPC is incorrect and
              CPC                          this apparent from records. As the records, the
                                           CPC wrongly disallowed the exemption
                                           claimed u/s 11 of the act by the assessee.
       2.      Provide an explanation      Calculation is made by CPC, In this regard,
as to why the calculation CPC has replied that "As verified return in the schedules and the process with Demand Reason for Demand:
final calculation of As Tax payer has not provided Income doesn't match registration details exemption is disallowed."

However, on perusal of record, it is gathered that assessee trust is duly registered u/s 12A(a) of the Act vide order no, HQ.III/X-

32/V-45/76/AR.IV dated 09.05.1977 by the then authority the CIT, Gujarat-III, Ahmedabad. (Copy of CPC reply and certificate is enclosed herewith for reference.

4. Submitted for kind perusal and further direction."

3. On perusal of the above reply, it reveals that the entire expenditure of the assessee has been disallowed by the CPC as the assessee allegedly had not furnished the registration details u/s.12Aof the Act. However, in the clarification, it has been admitted that there was calculation mistake and further that the registration of the assessee u/s.12A of the Act has been duly ITA No.760/Ahd/2025 Vatva Industries Association Charitable Trust vs. ITO Asst. Year : 2020-21 3 verified. In view of this, the disallowance made by the lower authorities is not sustainable, the same is ordered to be deleted.

4. In the result, the appeal of the assessee is allowed. Order pronounced in the Open Court on 25 /02/2026.

          Sd/-                                                                                                Sd/-
 (Annapurna Gupta )                                                                                     ( Sanjay Garg)
 Accountant Member                                                                                    Judicial Member

अहमदाबाद/Ahmedabad, िदनां क/Dated                               25/02/2026

टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS

आदे श की "ितिलिप अ#ेिषत/Copy of the Order forwarded                             to :
 1.    अपीलाथ$ / The Appellant
 2.    "%थ$ / The Respondent.
 3.    संबंिधत आयकर आयु& / Concerned CIT
 4.    आयकर आयु& (अपील)/ The CIT(A)-

5. िवभागीय "ितिनिध,आयकर अपीलीय अिधकरण ,अहमदाबाद/DR,ITAT, Ahmedabad.

6. गाड फाईल /Guard file.

आदे शानुसार/ BY ORDER, स%ािपत "ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad

1. Date of dictation (dictation pad is attached with file) : 19.2.2026

2. Date on which the typed draft is placed before the : 20.2.2026 Dictating Member.

3. Date on which the approved draft comes to the Sr.P.S./P.S :

4. Date on which the fair order is placed before the Dictating :

Member for pronouncement.

5. Date on which fair order placed before Other Member :

6. Date on which the fair order comes back to the : 26.2.26 Sr.P.S./P.S.

7. Date on which the file goes to the Bench Clerk. : 26.2.26

8. Date on which the file goes to the Head Clerk. :

9. The date on which the file goes to the Assistant Registrar :

for signature on the order.

10. Date of Despatch of the Order :