ACIT Vs Anuj Prakash Gupta (ITAT Raipur)
The Revenue filed an appeal against the order dated 27.11.2025 passed by the Commissioner of Income Tax (Appeals)/NFAC for Assessment Year 2019–20, challenging the deletion of an addition of ₹2,00,000 made by the Assessing Officer (AO) by disallowing a deduction claimed under Section 80GGC of the Income-tax Act, 1961. The deduction related to a donation made by the assessee to a political party.
The AO had disallowed the deduction after reopening the assessment under Sections 147/148, based on information received from the Investigation Wing, Ahmedabad. This information arose from a search conducted under Section 132 in the case of the RUPPs group, during which the concerned political party was identified as one of the entities allegedly involved in providing accommodation entries in the guise of political donations. The Revenue contended that statements of key functionaries of the party indicated that donations were refunded after retaining commission and that the assessee failed to establish the genuineness of the donation or the creditworthiness of the recipient.
Before the first appellate authority, the CIT(A)/NFAC noted that there was no dispute regarding the fact that the assessee had made the payment of ₹2,00,000 through banking channels and had obtained a printed receipt. While acknowledging that the political party had been identified by the Investigation Wing as being involved in circular accommodation transactions, the CIT(A) emphasized that the AO had not brought any direct or specific material on record to show that the assessee had received any refund of the donation. The assessee was also not confronted with any specific evidence nor provided an opportunity to cross-examine the persons whose statements were relied upon by the AO.
