DEVI LAL EDUCATIONAL & WELFARE TRUST,NALANDA vs. ITO EXEMPTION WARD 1 PATNA, PATNA

ITA 133/PAT/2026Status: DisposedITAT Patna27 May 2026AY 2020-20215 pages
AI SummaryAllowed

What did the Tribunal hold?

The ITAT held that the addition of Rs. 2,13,86,870/- made in the computation sheet was outside the scope of the limited scrutiny for which the case was selected. Therefore, this addition was not tenable.

What were the facts?

The assessee trust paid hire charges for building and furniture, as well as an advance, to a trustee. The Assessing Officer (AO) disallowed these payments under Section 13(2)(c) and made a significant addition to the trust's income. The CIT(A) upheld the disallowance but directed the assessee to raise the issue of the large addition before the AO.

What were the issues?

Whether the addition made in the computation sheet was within the scope of limited scrutiny. Whether payments to a trustee for hire charges and advances were allowable expenditures.

Which sections of the Income-tax Act were involved?

Section 13(2)(c),Section 13(1)(c),Section 11,Section 143(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA BENCH, PATNA

Hearing: 28.04.2026Pronounced: 27.05.2026

PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER

This is an appeal filed by the assessee against the order passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “the Ld. CIT(A)] dated

2 Devi Lal Educational & Welfare Trust 30.12.2025, DIN & order No. ITBA/NFAC/S/250/2025- 26/1084204025(1) on the following grounds of appeal:

“1. That the order passed by Id CIT(A) is unjust, unwarranted and bad in law.

2.

That the Id CIT(A) erred in confirming disallowance of expenditure of Rs 1,74,000/-on account of hire charge for building paid to Sri Devendra Prasad, truste

The order continues below.

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