Sh. Ram Agrawal Vs ITO (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi, dismissed the assessee’s appeal for Assessment Year 2023-24 and upheld the disallowance of a deduction of ₹10 lakh claimed under Section 80GGC of the Income-tax Act for an alleged contribution made to a political party. The appeal arose from an assessment order passed under Section 143(3), which had been affirmed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre.
The assessee had originally filed a return of income on July 20, 2023, claiming deductions under Chapter VIA, including a deduction under Section 80GGC. A revised return was subsequently filed under Section 139(5), after which the case was selected for scrutiny under the e-assessment scheme. The scrutiny was initiated specifically to examine the claim of deduction under Chapter VIA. During the assessment proceedings, the Assessing Officer issued a notice under Section 133(6) to the National People’s Party to verify the donation. In response, the political party informed the department that no contribution had been received from the assessee during the relevant financial year. Based on this reply, the Assessing Officer concluded that the assessee had failed to conclusively establish that the contribution had actually been made to the political party and disallowed the deduction claimed under Section 80GGC, adding the amount back to the assessee’s income.
