Income Tax : Income Tax authorities are increasingly reopening assessments involving political donation deductions claimed under Section 80GGC....
Income Tax : This examines why deductions under section 80GGC are being questioned in assessments. The key takeaway is that compliance with sta...
Income Tax : The issue concerned whether deductions under section 80GGC could be denied solely on investigation inputs alleging accommodation e...
Income Tax : India's Income Tax Department initiates nationwide verification against bogus deduction and exemption claims, warning taxpayers of...
Income Tax : Understand tax benefits under Sections 80GGB & 80GGC for political donations, eligibility rules, compliance needs, and recent lega...
Income Tax : The Tribunal sent the issue of deduction for political donations back to the Assessing Officer after finding that bank transaction...
Income Tax : The Tribunal held that mere disallowance of deduction claimed under Section 80GGC does not automatically amount to misreporting of...
Income Tax : The Tribunal upheld disallowance of deduction under Section 80GGC after finding the political donation lacked genuineness. The rul...
Income Tax : The Tribunal held that notice under Section 148 was invalid as it was issued by an officer lacking jurisdiction. It relied on CBDT...
Income Tax : The Tribunal upheld disallowance of deduction where donations were routed back to donors through layered transactions. The key tak...
The Tribunal held that the entire political donation could not be treated as bogus in the absence of incriminating evidence. To balance equities, only 10% of the alleged on-money was directed to be taxed on an estimated basis.
The Tribunal held that reassessment beyond three years is invalid where the alleged escaped income is below ₹50 lakh. A notice issued for a ₹5 lakh donation was declared void ab initio.
The issue concerned whether deductions under section 80GGC could be denied solely on investigation inputs alleging accommodation entries. It was held that such information is only a trigger for enquiry, not conclusive proof. The key takeaway is that disallowance requires assessee-specific evidence and compliance with natural justice.
The ITAT held that the AO’s allowance of an 80G deduction without examining the background of M/s. Aadhar Foundation was erroneous. The decision reinforces that Explanation-2 to Section 263 requires verification when there is material indicating possible bogus donations.
The tribunal ruled that funds donated to certain political parties were routed back to the donor, lacking genuineness. Deductions under Section 80GGC were disallowed as a result.
The Tribunal held that a reopening made after three years is void when approval is granted by the PCIT instead of the PCCIT/CCIT. The entire reassessment and related disallowance were struck down.
ITAT Rajkot’s ruling in Milind Pankajbhai Shroff vs. PCIT confirms the Principal Commissioner’s authority under Section 263 to revise an assessment where the AO failed to inquire into a ₹30 Lakh deduction claimed for bogus political donations,
ITAT Ahmedabad quashed the PCIT’s Section 263 revision setting aside an assessment, holding AO’s enquiry into an Section 80GGC political donation was plausible and adequate.
India’s Income Tax Department initiates nationwide verification against bogus deduction and exemption claims, warning taxpayers of penalties and prosecution.
This article explores the legal framework, relevant case law, a positive judgment, the pros and cons of Sections 80GGB & 80GGC deductions for Political Conations
