ITAT Upheld 200% Penalty for Bogus Political Donation Under Section 80GGC

Exim Trac Vs ACIT (ITAT Mumbai) The appeal before the Tribunal concerned the levy of penalty under Section 270A of the Income Tax Act, 1961 for Assessment Year 2019–20. The penalty, amounting to 200% of the tax sought to be evaded, was imposed on account of alleged under-reporting of income in consequence of misreporting. The assessee, a partnership firm engaged in export of general merchandise, had filed its return declaring total income of ₹50,05,950. In the return, it claimed a deduction of ₹1,00,000 under Section 80GGC for a donation purportedly made to a political party. Subsequentl...