Assessee entitled for Deduction U/s. 80GGB first time claimed before CIT(A) related to donation to political parties

Calcutta High Court held In the case of CIT Vs. Britannia Industries Ltd. that Where assessee made donation to political parties, same was not claimed as a deduction nor claimed by filing a revised return nor made a claim before the AO but same was claimed first time before the CIT(A), assessee was entitled to deduction.

There is no conflict between the Gurjargravures (P) Ltd. (supra) and Goetze (India) Ltd. (supra). In the former a claim for exemption was for the first time put up before the Appellate Assistant Commissioner who rejected the claim as not made before the I.T.O. This rejection was set aside by the Tribunal with direction upon the Appellate Assistant Commissioner to entertain the question of relief under section 84, claimed by the assessee in that case. The Supreme Court held that it was not competent for the Tribunal to have done so. The distinction between the two authorities eliminating any conflict is that in Gurjargravures (P) Ltd. (supra) the competence of the Tribunal to direct the Appellate Assistant Commissioner to entertain a claim not made before the I.T.O was found to be lacking. In Goetze (India) Ltd. (supra) the Supreme Court held that the assessing Authority’s power was limited but not that of the Tribunal in the context of dealing with a claim of the assessee therein not put forward before the assessing officer. In Gurjargravures (P) Ltd. (supra) the Tribunal itself did not consider to allow the claim for relief.

Full Text of the High Court Judgment / Order is as follows:-

The Court: Revenue has preferred this appeal against order dated 19-6-2012 passed by the Income Tax Appellate Tribunal “B” Bench Kolkata, in ITA No.14106/KOL/2011 pertaining to the assessment year 2005-06. By order dated 9-12-2012 the appeal was admitted on the following question:–

“(a) Whether in the facts and in the circumstances of the case the Learned Income Tax, Appellate Tribunal erred in law in allowing the deduction under section 80GGB in respect of donation made by the assessee to the political parties.”

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