RAMESH ARJANBHAI DANGAR,RAJKOT vs. ITO WARD 2(2)(1), RAJKOT, RAJKOT

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ITA 758/RJT/2026Status: DisposedITAT Rajkot10 July 2026AY 2019-20204 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the reassessment proceedings were initiated beyond the period of limitation prescribed under the amended provisions of the Income-tax Act. The notice under Section 148 was issued after the expiry of three years from the end of the assessment year, for an escaped income below Rs. 50,00,000.

What were the facts?

The assessee claimed deduction under Section 80GGC for donations to a political party. Information from a search operation suggested the donation was to an entity involved in questionable transactions. Reassessment proceedings were initiated, and the deduction was disallowed.

What were the issues?

The primary issue was the validity of reassessment proceedings initiated beyond the prescribed limitation period for escaped income below a certain threshold.

Which sections of the Income-tax Act were involved?

Section 80GGC,Section 147,Section 148,Section 143(2),Section 142(1),Section 132

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Shri Gaurang Khakhkhar, Ld. AR
For Respondent: Shri Ganesh Iyer, Ld. Sr. DR
Hearing: 08/07/2026Pronounced: 10/07/2026

आयकर अपीलीय अिधकरण, राजकोट �यायपीठ, राजकोट। In The Income Tax Appellate Tribunal, Rajkot Bench, Rajkot Before Dr. Arjun Lal Saini, Accountant Member And Shri Sonjoy Sarma, Judicial Member

आयकर अपील सं./ITA No. 758/RJT/2026 [ �नधा�रण वष�/Assessment Year: 2019-20 ] Ramesh Arjanbhai Dangar ITO Ward 2(2)(1), Rajkot B-81, Alap Centuary Society, Kalawad 512, 5th Floor, Aaykar Bhawan, Race Vs. Road, Nr Pushkardham Society, Course Ring Road, Rajkot-360001 Rajkot-360005, Gujarat Gujarat �थायीलेखासं./जीआइआरसं./PAN/GIR No.: ABUPD5589J (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : Shri Gaurang Khakhkhar, Ld. AR Respondent by : Shri Ganesh Iyer, Ld. Sr. DR Date of Hearing : 08/07/2026 Date of Pronouncement : 10/07/2026

:: ORDER :: Per, Shri Sonjoy Sarma, JM:

Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2019-20, is directed against the order under section 250 of the Income- tax Act, 1961 [hereinafter referred to as ‘the Act’] passed by the National Faceless Appeal Centre [hereinafter referred to as ‘NFAC’], dated 07.05.2026, which in turn arises out of an order passed by assessing officer u/s 147 of the Act, dated 06.03.2025.

ITA No. 758/RJT/2026 Ramesh Arjanbhai Dangar 02. Brief facts of the case are that the assessee is an individual who filed the return of income for the Assessment Year 2019-20 declaring a total income of Rs.12,71,620. In the return of income, the assessee claimed deduction under Section 80GGC of the Income-tax Act, 1961 in respect of donations made to a recognised political party. Subsequently, information was received by the Department pursuant to a search and seizure operation conducted under Section 132 of the Act in the case of the RUPP Group, Ahmedabad. During the course of the search, 23 registered recognised political parties, more than 35 intermediary entities and three major entry providers were covered. One of the entities involved was the Rashtriya Samajwadi Party (Secular), to which the assessee was stated to have made donations. Based on the said information, proceedings for reassessment were initiated by issuing notice under Section 148 of the Act dated 11.04.2023, followed by notices under Sections 143(2) and 142(1). After considering the reply filed by the assessee, the Assessing Officer was not satisfied with the explanation and disallowed the deduction claimed under Section 80GGC, thereby making the impugned addition.

3.

Dissatisfied with the order of the AO assessee went in appeal before the Ld. CIT(A) where the Ld. CIT(A) confirmed the action of the Assessing Officer.

4.

Still, aggrieved by the order of the Ld. CIT(A) assessee is in appeal before this tribunal. At the time of hearing the Ld. AR primarily challenged the validity of the reassessment proceedings on the ground of limitation. It was submitted that in the present case of the assessee the notice under Section 148 of the Act was issued on 11.04.2023, whereas the present case relates to Assessment Year 2019-20. It was contended that under the amended provisions governing reassessment, where the alleged escaped income represented in the form of an

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ITA No. 758/RJT/2026 Ramesh Arjanbhai Dangar asset does not exceed Rs.50,00,000, reassessment proceedings cannot be initiated beyond a period of three years from the end of the relevant assessment year. In the present case, the alleged escaped income was only Rs.4,00,000, which was far below the statutory threshold of Rs.50,00,000. Therefore, the limitation expired on 31.03.2023, and the notice issued on 11.04.2023 was clearly barred by limitation. The Ld. AR further relied upon the decision of the Coordinate Bench in Amit Pahuja v. DCIT, Circle-1, Thane, ITA No. 868/Mum/2026, relating to Assessment Year 2019-20, wherein under similar facts the reassessment proceedings were held to be invalid.

5.

On the other hand, the Ld. DR relied upon the orders of the authorities below.

6.

We have heard the rival submissions and perused the material available on record. It is an undisputed fact that the notice under Section 148 of the Act was issued on 11.04.2023. It is also not in dispute that the alleged escaped income involved in the present case is only Rs.4,00,000, which is much below the threshold limit of Rs.50,00,000 prescribed under the provisions governing reassessment. For Assessment Year 2019-20, where the escaped income represented in the form of an asset is less than Rs.50,00,000, the reassessment proceedings could have been initiated only within three years from the end of the relevant assessment year. The prescribed period expired on 31.03.2023. Since the notice under Section 148 of the act was issued only on 11.04.2023, the same is clearly beyond the period of limitation and is therefore without jurisdiction. We, respectfully following the decision of the Coordinate Bench relied upon by the assessee, we hold that the reassessment proceedings initiated in the present case are invalid in law. Consequently, the assessment framed pursuant thereto cannot

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ITA No. 758/RJT/2026 Ramesh Arjanbhai Dangar be sustained. Accordingly, the impugned reassessment order is quashed, and the Assessing Officer is directed to delete the addition made.

7.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on this 10th day of July, 2026.

Sd/- Sd/- [ Dr. Arjun Lal Saini ] [ Shri Sonjoy Sarma ] लेखा सद�य/Accountant Member �याियक सद�य/Judicial Member राजकोट/Rajkot िदनांक/ Date: 10 /07/2026 Copy of the order forwarded to : 1. The assessee 2. The Respondent 3. CIT 4. The CIT(A) 5. DR, ITAT, Rajkot 6. Guard File By order //True Copy// Sr. Private Secretary ITAT, Rajkot

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