VIJAYANT BHATIA,DELHI vs. AO WARD 34(5), RANGE CODE 49, CIVIC CENTRE

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC : NEW DELHI BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER ITA No.2846/Del/2026 Assessment Year : 2019-20

Vijayant Bhatia Vs AO – Ward – 34(5) 816, Kabir Basti Old Subji Mandi Range Code – 49, Malka Ganj Delhi – 110 007 Income Tax Department New Delhi – 110 002 PAN: BFLPB 9670 L

(Appellant) (Respondent)

Assessee by : Shri Rajat Gupta, Adv. Revenue by : Shri Manoj Kumar, Sr. DR Date of Hearing : 13.05.2026 Date of Pronouncement : 15 .07.2026

ORDER PER MADHUMITA ROY, JM:

The instant appeal filed by the assessee is directed against the order dated 16.01.2026 passed by the ld. Commissioner of Income-tax (Appeals), NFAC, Delhi [hereinafter referred to as ‘the Ld. CIT(A)’] under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) arising out of the assessment order dated 03.02.2025 passed by the AO, Assessment Unit (hereinafter referred to as 'the AO') under section 147 read with section 144B of the Act for Assessment Year 2019-20.

Bank Name Amount Date HDFC Rs.2,00,000 25.09.2018 State Bank of India Rs.2,00,000 14.03.2019

Hon'ble ITAT Raipur Bench In the matter of "The Assistant Commissioner of Income Tax, vs. Anuj Prakash Gupta; Date of pronouncement: 05.02.2026"

At the time of hearing, the assessee himself appeared. The allegation of the Department is that the said political party in which the assessee had made donation was tainted party providing bogus accommodation entries through donations. However, the A.O had not brought out any evidence which suggests that the said political party has derived commission and has paid money back to the assessee through backdoor. Nothing has been brought on record by the A.O to establish the direct nexus regarding benefit derived by the assessee from the said political party while making the said donation. In view of the aforesaid facts and circumstances, I do not find any infirmity with the findings of the Ld. CIT(Appeals)/NFAC which is hereby upheld.

PRAYER:

In view of the facts and grounds stated hereinabove, it is most respectfully prayed that this Hon'ble Authority may kindly be pleased to: a) Allow the present appeal and kindly quash the order issued by CIT(A) under section 250 of the Income Tax Act, 1961 seeking disallowance of amount of Rs. 4,00,000 under Section 80GGC of the Income Tax Act, 1961, and hold that the Appellant is duly entitled to the said deduction as the political contribution was made through proper banking channels and in compliance with the statutory provisions. b) Allow the present appeal and stay the ongoing demand notices issued against the appellant. c) Pass any other or further order(s) as this Hon'ble Authority may deem fit and proper in the facts and circumstances of the case, in the interest of justice and equity.”

3. The appeal is barred for limitation for 515 days in respect of which an

application for condonation of delay has been filed the content whereof seems to

be genuine and, therefore, delay is condoned.

Act being the political contribution made by the assessee through banking

channel on two specific dates.

(India) Pvt. Ltd. A search and seizure action under Section 132 of the Income

Tax Act, 1961 was conducted in the case of RUPPs group of Ahmedabad on

07.09.2022 wherein fact of donations to Political Parties for claiming bogus

deduction under Section 80GGC/80GGB of the Act were found to be re-routed

back to the donors in cash/RTGS/NEFT or other banking channels.

to the political parties and income totaling to Rs.2 lac chargeable to tax as

escaped assessment as of the opinion of the Revenue and notice, therefore, was

served with the notice issued under Section 148 of the Act dated 13.04.2023.

Such reopening of assessment was ultimately finalized upon making addition of

Rs.4 lac in the hands of the assessee claimed under Section 80GGC of the Act

which was further confirmed by the First Appellate Authority. Hence, the

instant appeal before us.

7. The assessee in fact, donated Rs.4 lacs to Rashtriya Samajwadi Party

registered political party through proper banking channels. Supported

documentary evidences including bank records and donation receipts were duly

furnished before the authorities below in support of the claim of deduction made

under Section 80GGC of the Act. The case was initiated in the background of the

search action conducted under Section 132 of the Act in the case of RUPP Group

of Ahmedabad included several registered unrecognized political parties and

related entities and the donation made by the assessee before us stated to be

covered in the said proceedings.

the genuine donation made by him has drawn our attention to page 14 of the

paper book wherefrom it appears that Rs.2 lacs has been donated through RTGS

to Samajwadi Party through HDFC Bank on 29.05.2018 and balance donation of

Rs.2 lacs has been made by the assessee through State Bank of India that too

through transfer from its account to the said political party which is evident from

the statement of account of the assessee lying with the SBI Bank, New Delhi

appearing at pages 1 to 23 of the paper book filed before us. In this connection,

the assessee has further relied upon a judgment passed by the Co-ordinate Bench

of Tribunal in the case of ACIT vs. Anuj Prakash Gupta by the Raipur Bench of

ITAT on 05.02.2026 wherein it was observed that the AO has not brought out

any evidence suggesting that the said political party has derived commission and

has paid money back to the assessee through backdoor. In the absence of direct

nexus regarding benefit derived by the assessee from the said political party to

whom the donation was made has not been able to be established, the order

passed by the Learned CIT(A) in deleting the addition in hands of the assessee

was upheld. Needless to mention that the fact as narrated hereinabove is identical

to that of the fact narrated before us by the respective Counsel and also on

record. He has further relied upon the judgment passed by the Co-ordinate Bench

in the case of Ashish Dubey vs. ACIT, Circle – 30(1), New Delhi wherein

disallowance of the claim of deduction under Section 80GGC of the Act to the

tune of Rs.25 lacs in respect of donation made to Rashtriya Komi Ekta Party was

challenged. Finally, considering the letter issued by the Election Commission of

India, which recognizes Rashtriya Komi Ekta Party as a political party registered

under Section 29A of the Representation of the People Act, 1951 and a copy of

confirmation by way of e-mail dated 19.12.2017 from the said party and also

considering the bank statement corroborating the fact of donations being made to

the said political party by banking channels and the receipt made by the political

party, the acknowledgment, appeal was allowed.

before us appearing at pages 24 and 25 herein. The payment of donation made by

the assessee and the receipt of acknowledgment to the assessee are, thus, on

record. The assessee as a donor cannot be faulted and disallowance/ denial of

deduction made in the fact and circumstances of the case and therefore, found

to be wrong.

ordinate Bench of the Tribunal in ITA No. 222/Del/2020 for A.Y 2015-16

wherein on the identical facts, following observation was made:- “Appreciating the material on record it comes up that at page no. 5 of the paper book assessee has provided a copy of receipt of donation issued by Rashtriya Komi Ekta Party. PAN of Rashtriya Komi Ekta Party is made available at page no. 6, which is similar to one mentioned on the receipt. Further, at page nos. 7 & 8 assessee has provided a copy of letter dated 19.01.2001 from Election Commission of India, which recognizes Rashtriya Komi Ekta Party as a political party registered u/s 29A of the Representation of the People Act, 1951. A copy of ITR of Rashtriya Komi Ekta Party for relevant assessment year 2015-16 is provided at page no. 9. The assessee has also provided a copy of confirmation by way of email dated 19.12.2017 from Rashtriya Komi Ekta Party at page nos. 10 & 11 of the paper book. The extract of assessee’s bank statement, available at pages 12-22 of the paper book, corroborates the fact of donations being made to the said political party by banking channel and corresponds to the details mentioned in the receipt 3 ITA no. 222/Del/2020 issued by the said political party as made available at page 5 of the paper book. However, this evidence is discredited by the tax authorities below on the basis that the said political party has not shown the donation in its return of income. The order of learned CIT(A) shows that aforesaid evidences were found to substantiate that assessee had paid donation to the registered political party. We are of the considered view that once the assessee had established, on the basis of material evidences, the fact of payment of the donation and the receipt acknowledged to the assessee then the mere fact that the political party on its part has failed to account for the donation received, the assessee as a donor cannot be faulted so as to deny the deduction. Grounds raised are sustained. Appeal of assessee is allowed with consequential effect.” 7

reason for disallowance of deduction made to the political party namely;

Rashtriya Samajwadi Party which is supported by sufficient corroborating

evidences being the bank statement and the receipt acknowledging such payment

of donation by the assessee issued by the Rashtriya Samajwadi Party. The order

passed by the authorities below is found to be bad in law not sustainable and

therefore quashed.

Order pronounced in the open court on 15 .07.2026

/- SDSd/Sd/ SdSSd/-Sd/- Sd/- (MADHUMITA ROY) JUDICIAL MEMBER Dated: 15.07.2026. Priti Yadav/R.. N Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi