Nihil Nitinbhai Bhuptani Vs ITO (ITAT Rajkot)
Assessee’s claim of deduction for ₹1,40,000 political donation was disallowed by AO & confirmed by NFAC on the ground that the political party had not reported the donation in its return. Assessee contended that the payment was made through banking channel to a registered political party, supported by receipt, PAN & Election Commission registration proof, & relied on the Delhi ITAT decision in Ashish Dubey v. ACIT (ITA No.222/Del/2020).
Tribunal observed that Assessee had furnished full evidence of donation & the fact that the political party failed to account for it could not invalidate the donor’s claim. Once the genuineness of payment & registration of the recipient political party are established, deduction cannot be denied merely due to the party’s omission.
Held: Following Ashish Dubey (Del ITAT), donation through banking channel to a registered political party is allowable; disallowance deleted.
FULL TEXT OF THE ORDER OF ITAT RAJKOT
Captioned appeal filed by the assessee pertaining to Assessment Year 201920, is directed against the order passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by National Faceless Appeal Centre (NFAC), Delhi/Commissioner of Income-tax (Appeals), dated 16.06.2025, which in turn arises out of an assessment order passed by Assessing Officer u/s. 147 r.w.s. 144B of the Act on 17.12.2024.
