Ganna Vikas Parishad Vs Assessment Unit (ITAT Delhi)
In this case before the Income Tax Appellate Tribunal (ITAT), Delhi, the assessee challenged the order of the Commissioner of Income Tax (Appeals) [CIT(A)] dated 30.10.2025 for Assessment Year 2021–22, wherein the disallowance of deduction claimed by the assessee was upheld. The assessee, a cane development council constituted under the Sugarcane (Regulation of Supply and Purchase) Act, 1953, had filed its return declaring nil income and claimed deduction under Section 80P of the Income-tax Act, 1961.
During assessment proceedings, the Assessing Officer noted that the claim under Section 80P was made for the first time. The assessee later contended that due to a clerical error, it should have claimed exemption under Section 10(20). However, the Assessing Officer rejected the claim under Section 10(20), holding that the assessee did not qualify as a “local authority” as defined under the Act. Accordingly, the deduction was denied.
The CIT(A) upheld the disallowance, observing that the assessee had inconsistently claimed exemptions and deductions under different provisions in various years, indicating lack of clarity in its claim. The CIT(A) further noted that the assessee had declared its status as an AOP/BOI, which did not support its claim for exemption as a local authority. It also observed that the assessee failed to provide sufficient evidence, including bank statements and details of income sources, and had inconsistently claimed only a part of its income as exempt.
