Ankit Atulkumar Shah Vs ITO (ITAT Ahmedabad)
Political Donation: Bank Payment and Receipt Cannot Rescue a Bogus Claim
₹1 Lakh Deduction Under Section 80GGC Denied
The Ahmedabad Tribunal has upheld the disallowance of a ₹1 lakh political donation claimed under Section 80GGC, holding that payment through banking channels and production of a donation receipt could not overcome the search material supporting the finding of an accommodation entry.
The Tribunal also rejected the assessee’s challenges to the validity of reassessment, including objections concerning limitation, the competent sanctioning authority, electronic authentication and the use of Section 148A.
The appeal was dismissed both on jurisdictional grounds and on the merits of the deduction.
Reopening Challenged on Several Grounds
For AY 2019-20, the assessee argued that the Section 148 notice had been issued after expiry of three years from the end of the assessment year.
According to him, the reopening therefore attracted Section 149(1)(b). Since the alleged escaped income was below ₹50 lakh, he contended that the notice could not legally be issued.
He further argued that approval should have been obtained from the Principal Chief Commissioner, rather than the Principal Commissioner. Additional objections concerned an allegedly unsigned approval and the procedure adopted for reopening based on third-party search information.
