SHASHIN R. BODAWALA,AHMEDABAD vs. ACIT, CIRCLE-5(1), AHMEDABAD

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ITA 1794/AHD/2018Status: DisposedITAT Ahmedabad30 January 2020AY 2015-163 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee had provided cheque numbers and bank statements, which were ignored by the lower authorities. The matter was set aside to the Assessing Officer for a fresh decision after giving the assessee an opportunity to be heard.

What were the facts?

The assessee claimed a deduction under Section 80GGC for donations made to two political parties. The Assessing Officer made an addition of Rs. 10,00,000/- as the parties did not respond to notices issued. The CIT(A) confirmed this addition.

What were the issues?

Whether the assessee's claim for deduction under Section 80GGC was valid despite the non-response of the recipient parties to notices, and if the lower authorities erred in ignoring the evidence provided by the assessee.

Which sections of the Income-tax Act were involved?

Section 80GGC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH

Before: SHRI MAHAVIR PRASAD & SHRI WASEEM AHMED

PER MAHAVIR PRASAD, JUDICIAL MEMBER

1.

This appeal filed by the Assessee is directed against the order of the Ld. CIT(A)-5, Ahmedabad dated 04.06.2018 pertaining to A.Y. 2015-16 and following grounds have been taken:

2 . A.Y. 2015-16 1.On facts and circumstances of the case as also law on subject, the learned AO has erred in making an addition of Rs 10,00,000/- on account of disallowance u/s 80GGC by purposely overlooking the evidence submitted by the assessee.

2. On facts and circumstances of the case as also law on the subject, the learned CIT(A), Ahmedabad-5 has erred in affirming the addition of Rs 10,00,000/- made by the learned AO.

3. The CIT(A), Ahmedabad-5 has erred in interpreting the provisions of 80GGC and asking for the source of donation. The learned CIT(A), Ahmedabad-5 has affirmed the addition on the grounds that "the appellant has failed to provide the details and evidences explaining the sources of payments" which is bad in law, hence required to be deleted.

4.

The Appellant craved leave to add, alter, delete, amend or rescind any of the above grounds of appeal.

2.

In this case, assessee has donated Rs. 5,00,000/- to Rashtriya Komi Ekta Party vide Cheque No. 196399 of ICICI Bank and Rs. 5,00,000/- for donated to Akhil Bharat Hindu Mahasabha (Gujarat State) vide Cheque No. 196398 of ICICI Bank.

3.

In order to confirmation the donation, notice u/s 131 was issued to the Rashtriya Kome Ekta Party and notice was also sent to Akhil Bharat Hindu Mahasabha but no replied was received by the Assessing Officer. Hence, he made addition of Rs. 10,00,000/-.

4. Against the said disallowance, assessee preferred first statutory appeal before the ld. CIT(A) who confirmed the action of the assessing officer.

5.

Now assessee has come before us by way of second statutory appeal and we can see cheque no and bank statement were filed by the assessee. But same were ignored by the lower authorities.

3 . A.Y. 2015-16 6. In the interest of justice, we set aside this matter back to the file of the Assessing Officer to decide matter afresh after giving an opportunity of being heard to the assessee. Thereafter will decide matter as per provisions of law.

7.

In the result, appeal filed by the Assessee is allowed for statistical purposes.

Order pronounced in Open Court on 30 - 01- 2020

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