Section 80GGC Deduction Denied Due to Suspicious Political Donation

Mihir Bipinbhai Parekh Vs DCIT (ITAT Mumbai) Summary: The Tribunal dismissed the assessee’s appeal and upheld the disallowance of deduction under Section 80GGC for a donation of ₹25 lakh made to a registered unrecognized political party, holding the donation to be non-genuine. The Revenue relied on investigation reports and search findings showing that the political party was allegedly involved in routing bogus donations through intermediaries and returning funds to donors in cash or through banking channels. Although the assessee argued that the donation was made through banking channels ...