NITINKUMAR N. SHAH,AHMEDABAD vs. ACIT, CIRCLE-5(1), AHMEDABAD

आदेश/O R D E R

PER PRADIP KUMAR KEDIA - AM:

3. On perusal of the assessment order, we notice that the assessee, a salaried employee, claimed deduction for donation amounting to Rs.10 Lakhs under s.80GGC of the Act made through banking channel to the political parties. The assessee has claimed to have donated Rs.5 Lakhs to Rashtriya Komi Ekta Party and Rs.5 Lakhs to Rashtriya Samajwadi Party (Secular). In this regard, it is case of the assessee that in the course of the scrutiny proceedings, the assessee furnished the proof of payments as evidenced by receipts issued by the political parties as well as registration of these political parties issued by the Election Commission of India. A copy of the bank statement was also produced to substantiate the claim towards payment of donation. It is claimed on behalf of the assessee that despite these facts, the AO disallowed the claim made under s.80GGC of the Act on the ground that notice issued under s.131 of the Act to Rashtriya Komi Ekta Party remained uncomplied with. The bank statement furnished by the party did not show the cheque numbers of the assessee. Similarly, notice issued under s.131 of the Act to Rashtriya Samajwadi Party (Secular) also remained unresponded. It was alleged by the AO that transaction with Rashtriya Komi Ekta Party are sham and money donated to the party has been clandestinely returned to its beneficiaries. The claim of deduction under s.80GGC of the Act by assessee was rejected.

4. In the first appeal, the CIT(A) denied the relief to the assessee on the ground that despite several opportunities given to the assessee, the onus placed on the assessee to substantiate the bonafides of donation purportedly made to the political parites could not be discharged.

“5. On perusal of the facts and circumstances narrated above, we find that certain observation from the Revenue are overriding in nature which distinguishes the case of the assessee with that of M/s. Sudeep Infrastructure order dated 22.10.2019 referred to and relied upon on behalf of assessee at the time of hearing before Tribunal. In the instant case, the bank statement filed by assessee showing payment made does not show complete picture of the name of the bank and other vital details. Therefore, we are unable to place reliance on such incomplete bank statement at present. Secondly, summon issued to one political party appears to have return back without service. The other political party has not proved the factum of the receipt of donation.

7. Therefore, having regard to the totality of the case, we consider it just and equitable to restore the issue back to the file of the AO for de novo examination in accordance with law after making suitable enquiry with political parties as may be considered expedient and after providing proper opportunity to the assessee. The assessee shall be at liberty to adduce such evidence as he may think fit to substantiate the bonafides of donations made and prove eligibility of deduction under s.80GGC of the Act.”

6. In parity, the issue is remanded back to the file of the AO for de novo examination on identical terms and directions. It shall be open to AO to make such objective enquiries in the matter as may be considered expedient to arrive at a cogent finding in this regard.

This Order pronounced in Open Court on 27/01/2020

Sd/- Sd/- (MAHAVIR PRASAD) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad: Dated 27/01/2020 True Copy S. K. SINHA आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file. By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद ।