Ashish Dubey Vs ACIT (ITAT Delhi)
Party Forgot, Donor Not at Fault-Donor Can’t Be Punished for Party’s Omission – ITAT Delhi Allows 80GGC Deduction for Verified Political Donation
The assessee claimed deduction of ₹25 lakh u/s 80GGC towards donation made to Rashtriya Komi Ekta Party, which was disallowed by AO & upheld by CIT(A) for want of sufficient proof and because the political party had not shown the donation in its return. Before the Tribunal, the assessee produced complete evidences—donation receipt, PAN of the political party, Election Commission registration certificate u/s 29A of the Representation of People Act, ITR of the party, and bank statement showing payment through banking channel.
The ITAT observed that the evidences clearly established the fact of genuine payment to a registered political party and that the donor cannot be denied deduction merely because the recipient failed to record it in its books. The Tribunal held that once the donation was verifiably made through banking channel to a recognized political party, deduction u/s 80GGC could not be denied.
FULL TEXT OF THE ORDER OF ITAT DELHI
The assessee has come in appeal against the order dated 29.11.2019 passed by the Commissioner of Income Tax (Appeals)-10, New Delhi (hereinafter referred as “learned First Appellate Authority” or in short “FAA”), in Appeal no. 412/2017-18 for the assessment year 2015-16, arising out of the order dated 19.12.2017 u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred as the “Act”), passed by the Assistant Commissioner of Income-tax, Circle 30(1), New Delhi (hereinafter referred in short as “Ld. AO”).
