Mohammed Aijaz Shaikh Vs ITO (ITAT, Jodhpur Bench)
A Later Hearing Cannot Cure an Earlier Jurisdictional Hole—ITAT Sends Reassessment, Donation & Cash Deposits Back for a Speaking Order u/s 250(6)
Reassessment Brings Two Additions
The Assessee, a retired employee of Hindustan Zinc Ltd., filed his original return declaring income of ₹16,29,460, later revised to ₹16,35,490.
Notice u/s 148A(b) was issued on 29.03.2023. After receiving the Assessee’s reply, the AO passed an order u/s 148A(d) & issued notice u/s 148 on 10.04.2023.
The reopening arose from information concerning a political donation of ₹3 lakh made to Rashtriya Samajwadi Party (Secular). The information allegedly emerged from searches conducted against certain Registered Unrecognised Political Parties & intermediary entities in Ahmedabad.
During reassessment, the AO also noticed cash deposits aggregating to ₹8.68 lakh in the Assessee’s SBI account.
Donation Disallowed & Cash Deposits Added
For the political donation, the Assessee furnished the donation receipt & bank statement showing payment through banking channels. The AO nevertheless held that the genuineness of the donation had not been established & disallowed deduction u/s 80GGC.
Regarding cash deposits, the Assessee explained that the amounts were deposited by his son out of income earned over the years. Copies of the son’s returns for AYs 2017-18 & 2018-19, certain bank records & subsequently an affidavit were produced.
