VATVA INDUSTRIES ASSOCIATION CHARITABLE TRUST,AHMEDABAD V. I.T.O. WARD 2 EXEMPTION , AHMEDABAD

ITA 760/AHD/2025

AI Insights

The case involves the Vatva Industries Association Charitable Trust, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was concerning the assessment year 2020-21, where the assessee alleged a calculation mistake by the CPC in assessing their income. The CPC had disallowed the exemption claimed under section 11 of the Income Tax Act, citing a lack of registration details under section 12A. However, it was later clarified that the trust was indeed registered under section 12A, and the disallowance was based on a calculation error. The Tribunal's decision to allow the appeal resulted in the deletion of the disallowance.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 839996 (ITAT-AHMEDABAD)
• Duration Of Justice: 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2020-2021
• Appeal Filed On: 10-04-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURESH CHAND MEENA
• Assessee Lawyers: JAINISH PARIKH
• Keywords: Charitable institution
• Section: 11

Judgement Text

" आयकर अपीलीय अिधकरण,अहमदाबाद \u0011ायपीठ ‘एस.एम.सी’,अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD \u0019ी संजय गग , \u0011ाियक सद एवं अ पूणा गु#ा, लेखा सद क े सम'। ] Before Shri Sanjay Garg, Judicial Member And Annapurna Gupta, Accountant Member आयकर अपील सं /ITA No.760/Ahd/2025 िनधा \u000fरण वष\u000f /Assessment Year : 2020-21 Vatva Industries Association Charitable Trust Phase-I, Nr. Old Nirma B/h. SBI Vatva Ahmedabad – 382 445 बनाम/ v/s. The I.T.O. Ward-2 Exemption Ahmedabad – 380 015 \u0013थायी लेखा 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 आदेश/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 Printed from counselvise.com 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 calculation made by the CPC On perusal of records, it is noticed that the calculation made by the CPC is incorrect and 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 as to why the calculation in the schedules and the final calculation of Income doesn’t match Calculation is made by CPC, In this regard, CPC has replied that \"As verified return process with Demand Reason for Demand: As Tax payer has not provided 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 Printed from counselvise.com 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 ) Accountant Member ( Sanjay Garg) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 25/02/2026 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश 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 , अिधकरण अपीलीय आयकर , अहमदाबाद/DR,ITAT, Ahmedabad. 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ 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 Dictating Member. : 20.2.2026 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 Sr.P.S./P.S. : 26.2.26 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 : Printed from counselvise.com "