Vareli Textile Industries v. CIT

SHREE TRAPAJ SEVA SAHAKARI MANDLI LIMITED,BHAVNAGAR vs. THE ITO, WARD -1(9), BHAVNAGAR

In the result, the appeal of the assessee is allowed for statistical purpose

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinha

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER AND SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER ITA No. 460 & 461/AHD/2026 Assessment Years: 2018-19 Shree Trapaj Seva Sahakari Income Tax Officer, Mandli Limited, Ward – 1(9), To Trapaj, Tal. Talaja, Bhavnagar - 364001 Bhavnagar, Vs. Gujarat - 364150 [PAN – AAPAS3709L] (Appellant) (Respondent) Assessee by Shri Parimalsinh B Parmar, AR Revenue by Shri Rignesh Das, CIT-DR Date of Hearing 24.03.2026 Date of Pronouncement 07.04.2026 O R D E R PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER: These two appea…

SHREE TRAPAJ SEVA SAHAKARI MANDLI LIMITED,BHAVNAGAR vs. THE ITO, WARD -1(9), BHAVNAGAR

In the result, the appeal of the assessee is allowed for statistical purpose

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinha

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER AND SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER ITA No. 460 & 461/AHD/2026 Assessment Years: 2018-19 Shree Trapaj Seva Sahakari Income Tax Officer, Mandli Limited, Ward – 1(9), To Trapaj, Tal. Talaja, Bhavnagar - 364001 Bhavnagar, Vs. Gujarat - 364150 [PAN – AAPAS3709L] (Appellant) (Respondent) Assessee by Shri Parimalsinh B Parmar, AR Revenue by Shri Rignesh Das, CIT-DR Date of Hearing 24.03.2026 Date of Pronouncement 07.04.2026 O R D E R PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER: These two appea…

KANHA HEIGHTS ,VADODARA vs. THE ITO, WARD 3(1)(1), VADODARA

In the result, the appeal of the assessee is allowed for statistical purpose

Bench: Shri Tr Senthil Kumar & Shri Narendra Prasad Sinhaassessment Years:2015-16

…justice. Considering these facts, the ld. CIT(A) should have examined the grounds taken by the assessee on merits rather than dismissing the appeal on technical ground of delay. The Hon’ble Gujarat High Court, has held in the case of Vareli Textiles Limited (284 ITR 238) (Gujarat), that meritorious case should not be thrown out on the ground of limitation. In the interest of justice, therefore, we deem it proper to set aside the matter to the file of Ld. CIT(A) with a direction to adjudicate the grounds taken by the assessee on merits, after condoning the delay in filing of appeal before him. 8. In the result,…

SWEETYBEN ANKITKUMAR SHAH,AHMEDABAD vs. THE ITO, WARD-5(3)(2), AHMEDABAD

In the result, the appeal of the assessee is allowed for statistical purpose

Bench: Shri Sanjay Garg & Shri Narendra Prasad Sinhaassessment Year:2017-18

…e grounds taken by the assessee on merits. Though we are not fully convinced with the explanation of the assessee regarding the delay in filing of the appeal, we are guided by the judgment of Hon’ble Gujarat High Court in the case of Varleli Taxtiles Limited (284 ITR 238), Sweetyben Ankitkumar Shah vs. ITO AY2017-18 3 (Gujarat), wherein it was held that the meritorious case should not be thrown out on the ground of limitation. Since the addition made in the present case was not adjudicated on merits, we deem it proper to condone the delay in filing the present appeal. 5. The brief facts of the case are that the…

MEENABA DIVYAVIRSINHJI ALIAS DIGVIJAYSINHJI JADEJA,BHAVNAGAR vs. THE DY.CIT, CIRCLE-1, BHAVNAGAR

In the result, the appeal of the assessee is allowed for statistical purpose

Bench: Ms. Suchitra Kamble & Shri Narendra Prasad Sinhaassessment Year: 2019-20 Meenaba Divyavirsinhji Alias Deputy Commissioner Of Digvijaysinhji Jadeja Income Tax, Circle-1, Diyanirman House, Bhavnagar - 364002 Chitranjan Chowk, Vs. Bhavnagar - 364001 [Pan – Aespj 0763 K] (Appellant) (Respondent) Assessee By Shri Mohit Balani, Ar Revenue By Shri Ashok Kumar Suthar, Sr. Dr Date Of Hearing 06.01.2026 Date Of Pronouncement 09.01.2026 O R D E R

…d. CIT(A) did not adjudicate the grounds raised by the assessee in the first appeal on merits. He had dismissed the appeal by not condoning the delay in filing the appeal before him. Hon’ble Gujarat High Court has held in the case of Vareli Textile Industries 284 ITR 238 (Gujarat) that meritorious case should not be thrown out on the ground of limitation. Considering the fact that the Meenaba Divyavirsinji Alias Digvijaysinhji Jadeja Vs. DCIT Asst. Year : 2019-20 5 assessee was a non-filer individual and huge addition of Rs.2.76 Crores was made in his case, the Ld. CIT(A) should have examined the matter and decid…

PRATHNA CHARITABLE TRUST,AHMEDABAD vs. THE ITO, WARD-2-EXEMP, AHMEDABAD

In the result, appeal filed by the assessee being ITA

Bench: Shri Sanjay Garg & Shri Narendra Prasad Sinha

…be justified. It is also not evident whether any opportunity was allowed to the assessee by the CPC before making the adjustments while processing the return. It has been held by the Hon’ble Gujarat High Court in the case of Vareli Textile Industries vs. CIT, 284 ITR 238 (Guj) that a meritorious case should not be thrown out on the ground of limitation. Considering the fact that the assessee is a Trust engaged in charitable activities, we deem it proper to set aside the matter to the file of the Ld. CIT(A) with a direction to condone the delay and, thereafter, adjudicate the matter on merits subject to payment of…

PRATHNA CHARITABLE TRUST ,AHMEDABAD vs. THE ITO, WARD-2, EXEMP, AHMEDABAD

In the result, appeal filed by the assessee being ITA

Bench: Shri Sanjay Garg & Shri Narendra Prasad Sinha

…be justified. It is also not evident whether any opportunity was allowed to the assessee by the CPC before making the adjustments while processing the return. It has been held by the Hon’ble Gujarat High Court in the case of Vareli Textile Industries vs. CIT, 284 ITR 238 (Guj) that a meritorious case should not be thrown out on the ground of limitation. Considering the fact that the assessee is a Trust engaged in charitable activities, we deem it proper to set aside the matter to the file of the Ld. CIT(A) with a direction to condone the delay and, thereafter, adjudicate the matter on merits subject to payment of…

MUKESH BATUBHAI DESAI,AHMEDABAD vs. THE ITO, WARD-3(3)(1), AHMEDABAD

In the result, appeal of the assessee is allowed for statistical purpose

Bench: Shri Sanjay Garg & Shri Narendra Prasad Sinhaassessment Year: 2015-16

…additions made by the Assessing Officer, it is found that there are merits in the grounds as taken by the assessee. It has been held by the Hon’ble Gujarat High Court in the case of Vareli Mukesh Batubhai Desai vs. ITO Page 5 of 6 Textile Industries vs. CIT, 284 ITR 238 (Guj) that a meritorious case should not be thrown out on the ground of limitation. We are, therefore, of the considered opinion that the Ld. CIT(A) should have examined the appeal filed by the assessee on merits rather than dismissing the appeal on technical grounds of limitation. Accordingly, the matter is set aside to the file of the Ld. CIT(A…

ISRAMA DUDH UTPADAK SAHAKARI MANDLI LTD.,PETLAD, ANAND vs. THE ITO, WARD 1(3)(1), PETLAD,GUJARAT

In the result, appeal of the assessee is allowed for statistical purpose

Bench: Shri Sanjay Garg & Shri Narendra Prasad Sinhaassessment Year: 2016-17

…IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH, AHMEDABAD BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER Assessment Year: 2016-17 Israma Dudh Utpadak Income Tax Officer, Sahakari Mandli Limited, Ward – 1 (3)(1), 1, Israma D.U.S.M., T.P. No.2, FP No.24, At – Israma, Bank House, TA – Petlad, Nr. Laxmiji Temple, Vs. Dist. Anand – 388 465 Ranchodji College Road, Gujarat Petlad, [PAN – AAAJI 0058 A] Gujarat – 388 450. (Appellant) (Respondent) Assessee by Shri Dushyant Maharshi, AR Revenue by Shri R.P. Rastogi, CIT (DR) Date of Hearing 17.06.2025 Date of Pronouncem…

SHRI SARASWATI KELAVANI MANDAL,KATHLAL vs. INCOME TAX OFFICER, WARD-1, NADIAD

In the result, the appeal filed by the assessee is allowed for statistical purposes

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinhaआयकर अपील सं./Ita No. 1912/Ahd/2024 "नधा"रण वष"/Asstt. Year: 2021-22 Shri Saraswati Kelavani Mandal, The Income Tax Officer, Patel Jivabhai Dhulabhai, बनामVs Ward-1, . Katulal, Nadiad. Kheda-387630. Pan: Aajts0827Q ( ""यथ" /Respondent) (अपीलाथ" /Appellant Assessee By : Shri Girish B. Mehta, Ar Revenue By : Shri Prathvi Raj Meena, Cit.Dr सुनवाई क" तार"ख/Date Of Hearing : 05/03/2025 घोषणा क" तार"ख /Date Of Pronouncement: 10/03/2025 आदेश/O R D E R Per Narendra Prasad Sinha, Am: This Appeal Is Filed By The Assessee Against The Order Dated 04.09.2024 Passed By The Additional/Joint Commissioner Of Income Tax(Appeals), Mumbai, (Hereinafter Referred As Jcit(A)) Relevant To The Assessment Year 2021-22. 2. The Brief Facts Of The Case Are That The Assessee Is A Trust Running Educational Institutions. The Return Of Income For A.Y 2021-22 Was Filed On 09.02.2022, Declaring Total Income At Rs. Nil. In The Return Of Income, The Assessee Had Claimed Exemption Of Rs.2,42,88,361/- U/S.10(23C) Of The Act. The Return Of Assessee Was Processed By The Cpc On 09.12.2022 U/S.143(1) Of Asst. Year 2021-22

…is a Trust engaged in charitable activities, the Ld. JCIT(A) was not correct in dismissing the appeal on account of limitation without examining the issue on merits. It has been held by the Hon’ble Gujarat High Court in the case of Vareli Textile Industries (284 ITR 238) (Gujarat) that meritorious cases should not be thrown out on ground of limitation. Therefore, it was incumbent upon the First Appellate Authority to also examine as to whether there was any merit in the grounds as raised by the assessee, which was not done. In the interest of justice, we, therefore, set-aside the matter to the file of the ld. CI…

SHREE NITYANANDSWAMI EDUCATION TRUST,DHARMAJ TARAPUR ROAD NAR vs. ASSISTANT COMMISSIONER OF INCOME TAX, DCIT (EXEMPTION) AHMEDBAD

In the result, the appeal of the assessee is allowed for statistical purposes

Bench: Ms. Suchitra Kamble & Shri Narendra Prasad Sinha

…the order under Section 154 passed by the Assessing Officer was communicated on the portal under the caption “issue letter” which was misunderstood by the assessee. Be that as it may, the Hon’ble Gujarat High Court has held in the case of Vareli Textiles Ltd (284 ITR 238 (Guj)) that meritorious cases should not be thrown out on ground of limitation. Therefore, the Ld. CIT(E) was not correct in summarily rejecting the appeal on the ground of limitation without examining the merits of the case. It is found that the assessee had filed an application for condonation of delay in filing Form No. 10B. The Ld. CIT(E) vid…

BALARAM CONSTRUCTION LIMITED,BANASKANTHA vs. THE PCIT, AHMEDABAD-1, AHMEDABAD

In the result, appeal filed by the assessee is dismissed as non- maintainable

Bench: Smt.Annapurna Gupta & Shri Siddhartha Nautiyalassessment Year : 2018-19 Balaram Construction Ltd. The Pcit 309, 3Rd Floor, Shital-9 Vs Ahmedabad-1 Opp. Bihari Bagh, Palanpur Ahmedabad – 380 015 Banaskantha – 385 001 (Gujarat) (Gujarat) Pan: Aaacb 6264 C

…consciously opted not to exercise its right of filing appeal against the order of the Ld.PCIT. To this, the Ld.Counsel for the assessee contended that the Hon’ble Jurisdictional High Court in the case of Vareli Textile Industries vs. CIT reported in {2016] 284 ITR 238 (Guj.) had held that the settled legal position of law with regard to condonation of delay was that a meritorious case should not be thrown out on the ground of limitation. That, it is necessary atleast prima facie to examine whether the assessee has a case on merits, for condoning the delay in filing the appeal or not. Copy of the order was file…

ADANI AGRI FRESH LTD.,,AHMEDABAD vs. THE DY.CIT, CIRCLE-1,, AHMEDABAD

In the result the appeal and the Cross Objection of the assessee are partly allowed

Bench: Shri Mahavir Prasad & Shri Waseem Ahmedआयकर अपील सं./Ita No.1653/Ahd/2015 "नधा"रण वष"/Asstt. Year: 2010-2011 & C.O. 201/Ahd/2015 (In Ita No.2720/Ahd/2015) "नधा"रण वष"/Asstt. Year: 2011-2012 Adani Agri Fresh Ltd., D.C.I.T, Adani House, Vs. Circle-1, Nr. Mithakhali Six Roads, Ahmedabad. Navrangpura, Ahmedabad. Pan: Aafca0413P

…his predecessors upholding similar disallowances in earlier assessment years. He ought to have appreciated, inter alia, that the decisions of the Supreme Court in Brooke Bond India Limited (225 ITR 798 and of the Gujarat High Court in Vareli Textiles Limited (284 ITR 238) holding that share issue expenses were capital in nature and, therefore, not deductible as revenue expenses as claimed by the assesses in those cases, were not relevant on the issue of their deductibility u/s. 35D (which made provision for deduction of expenses on amortization basis even if they be capital in nature) which was required to be dec…

ORACLE GRANITO LTD.,,AHMEDABAD vs. THE ADDL. CIT, RANGE-5,, AHMEDABAD

Bench: Shri Pramod Kumar & Ms. Madhumita Roy

…D(2), the nature of expenses eligible for deduction u/s 35D have been specified which do not include expenses for increase in authorized share capital. Relying upon the judgment passed by the Jurisdictional High Court in the matter of M/s. Vareli Textile Ltd. 284 ITR 238 (Guj.) following the ratio laid down by the Supreme Court in the matter of Brooke Bond India (supra) such expenses was not allowed u/s 35D of the Act, the said sum of Rs.1,13,068/- claimed as revenue expenditure has been disallowed by the Learned AO which was further confirmed by the First Appellate Authority. Hence, the instant appeal. 4. At th…

ORACLE GRANITO LTD.,,AHMEDABAD vs. THE ACIT, CIRCLE-5,, AHMEDABAD

Bench: Shri Pramod Kumar & Ms. Madhumita Roy

…D(2), the nature of expenses eligible for deduction u/s 35D have been specified which do not include expenses for increase in authorized share capital. Relying upon the judgment passed by the Jurisdictional High Court in the matter of M/s. Vareli Textile Ltd. 284 ITR 238 (Guj.) following the ratio laid down by the Supreme Court in the matter of Brooke Bond India (supra) such expenses was not allowed u/s 35D of the Act, the said sum of Rs.1,13,068/- claimed as revenue expenditure has been disallowed by the Learned AO which was further confirmed by the First Appellate Authority. Hence, the instant appeal. 4. At th…