Milind Pankajbhai Shroff Vs PCIT (ITAT Rajkot)
This case involves an appeal filed by the assessee, Milind Pankajbhai Shroff, against the order of the Principal Commissioner of Income-tax (PCIT) under section 263 of the Income-tax Act, 1961 (the Act) for the assessment year (AY) 2018-19. The central issue is whether the original assessment order, passed under section 143(3), was erroneous and prejudicial to the interest of the Revenue because the Assessing Officer (AO) allegedly failed to properly inquire into the genuineness of deductions claimed by the assessee under Chapter VI-A for political and other donations.
Factual Background
The assessee filed his Income Tax Return for AY 2018-19, which was selected for limited scrutiny specifically for the reason of “deduction from total income (Chapter VI-A).” The AO completed the assessment under section 143(3) on February 2, 2021, accepting the returned income with a minor addition.
Subsequently, the PCIT initiated revision proceedings under section 263 of the Act. The PCIT noted that the assessee had claimed a deduction of ₹30,00,000/- under section 80GGC for a donation made to the political party “Rashtriya Samajwadi Party (Secular)” and a 50% deduction of ₹1,12,500/- (from a donation of ₹2,25,000/-) to the Tara Foundation under Chapter VI-A.
