NAVEEN KUMAR,BARWALA vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE, HISAR, HISAR

The instant appeal, preferred by the assessee, is directed against the order dated 07.03.2025 [DIN & ORDER No. ITBA/APL/S/250/2024-25/1074177958(1) passed by the Commissioner of Income Tax (Appeals)-5, Mumbai, arising out of the order dated 26.12.2019 passed by the DCIT Circle, Hissar under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for the Assessment Year 2017-18. amounting to Rs. 17,75,000/- and disallowance of exemption u/s 10(13A) of Rs.

At the time of hearing of the matter the Ld. counsel of the assessee did not press the issue raised in ground No. 3 relating to HRA disallowance of Rs. 1,51,500/-. Hence, ground No. 3 is dismissed as not pressed.

Fact of the case in brief is this that during the assessment Year 2017-18 the assessee received salary of Rs. 1,03,94,200/- including exempt allowances and perquisites amounting to Rs. 1,70,700/-. The assessee alleged to have made donations of Rs. 17,75,000/-to a political party namely Jan Rajya Party and claimed deduction of Rs. 17,75,000/- under Section 80GGC of the Act for such donations. The AO disallowed the claim by holding that the donation alleged to have been given to Jan Rajya Party was not genuine. Furthermore, it was informed by the Treasurer of Jan Rajya Party Shri Surender Shukla that no such donation had been received by the political party from the assessee herein. Furthermore, a big fraud was going on through fake bank accounts in which donation had been shown. The AO ultimately rejecting the claim of the assessee and made addition of Rs. 17,75,000/- under Section 80GGC of the Act in the hands of the assessee. The same was further confirmed by the Ld. CIT(Appeals). Hence, the instant appeal before us. through the materials available on record. It is the case of the assessee that the donation has been made to the said political party viz. Jan Rajya Party through banking channel particularly assessee’s own saving bank accounts bearing No. 017701575663 lying into ICICI Bank, Wealth Management Branch, evidences whereof have been enclosed in the paper book. In fact copy of audit report of Jan Raajya Party [available at pages 37-47 of the paper book, relevant page no. 46 of the paper book], shows amounts received from the assessee on 15.02.2017; 18.02.2017; 24.02.2017; 1.03.2017; 6.03.2017; 10.03.2017 and 18.03.2017 i.e. total receipt of Rs. 17,75,000/-. Apart from that the receipt given by Jan Raajya Party with regard to the payment made by the assessee as donation of Rs. 17,75,000/- is also appearing at pages 18,19, & 20 of the paper book. So far fraud on account of donation given by several donors to the said party is concerned, the clarification has also been filed before us wherein it appears that one allegation leveled against the said party or the President of the said party namely Mr. Ravishankar Bharat who was controlling the bank a/c of the said party was false; such fact is evident from the final report which was duly placed before the Ld. AO.