MANSUKHBHAI ARVADIA,RAJKOT vs. INCOME TAX OFFICER, WARD-3, MORBI

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ITA 171/RJT/2026Status: DisposedITAT Rajkot06 July 2026AY 2019-204 pages
AI SummaryRemanded

What did the Tribunal hold?

The tribunal restored the matter to the Assessing Officer for fresh examination, considering the interest of justice and fair play. The assessee was directed to cooperate with the authorities.

What were the facts?

The assessee claimed a deduction of Rs. 2,00,000 under Section 80GGC for a donation to a political party. The Assessing Officer disallowed this deduction based on information suggesting the party was involved in a racket of providing accommodation entries through political donations. The assessee's appeal before the CIT(A) was dismissed due to non-compliance.

What were the issues?

The validity of reassessment proceedings and the allowability of the deduction under Section 80GGC were key issues, compounded by the assessee's failure to substantiate the claim and comply with procedural requirements.

Which sections of the Income-tax Act were involved?

Section 80GGC,Section 147,Section 144,Section 144B,Section 148A,Section 148,Section 142(1),Section 143(2),Section 250

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 Digant Kiyada, Ld. AR
For Respondent: Shri Gopi Nath Chaubey, Ld. Sr. DR
Hearing: 02/07/2026Pronounced: 06/07/2026

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. 171/RJT/2026 [ �नधा�रण वष�/Assessment Year: 2019-20 ] Mansukhbhai Arvadia Income Tax Officer, Ward-3, 101, Bhavy Palace, Pramukh Aaykar Bhavan, Morbi-363642 Vs. Residence, Ravapar, Morbi-363641 Gujarat Gujarat �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AAYPA1047R (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : Shri Digant Kiyada, Ld. AR Respondent by : Shri Gopi Nath Chaubey, Ld. Sr. DR Date of Hearing : 02/07/2026 Date of Pronouncement : 06/07/2026

:: 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 (NAC) Delhi [in short Ld.CIT(A)], dated 13.01.2026, which in turn arises out of an assessment order passed by the Assessing Officer u/s 147 r.w.s. 144 read with section 144B of the Act, dated 30.12.2024.

ITA No. 171/RJT/2026 Mansukhbhai Arvadia 2. Brief facts of the case are that the assessee, an individual, filed a return of income for Assessment Year 2019–20 declaring total income of Rs.10,28,260. The return was initially processed under Section 143(1) of the Income Tax Act. During the relevant year, the assessee had claimed deduction under Section 80GGC amounting to Rs.2,00,000 towards donation made to Apna Desh Party, a political party. Subsequently, reassessment proceedings were initiated. Notice under Section 148A(b) was issued, and after considering the assessee’s reply, an order under Section 148A(d) dated 18.04.2023 was passed leading to issuance of notice under Section 148. In response, the assessee filed a return of income on 16.05.2023. Thereafter, notices under Sections 142(1) and 143(2) were issued from time to time seeking details and explanations regarding the deduction claimed under Section 80GGC. During assessment proceedings, the Assessing Officer relied upon information obtained from the Investigation Wing, including statements of key persons associated with Apna Desh Party. According to such information, the party was allegedly involved in a racket of providing accommodation entries through political donations, where the donated amount was returned to donors after deduction of commission. The assessee could not furnish satisfactory evidence or explanation in support of the claim. Accordingly, the Assessing Officer disallowed the deduction of Rs.2,00,000 and completed the assessment by determining total income at Rs.12,28,260. 3. Dissatisfied with order of AO the assessee filed an appeal before the Ld. CIT(A). However, due to repeated non-compliance and absence on consecutive hearing dates, the Ld. CIT(A) dismissed the appeal and sustained the order of the Assessing Officer.

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ITA No. 171/RJT/2026 Mansukhbhai Arvadia 4. Aggrieved by the order of Ld. CIT(A), the assessee preferred an appeal before this tribunal, challenging the validity of reassessment proceedings under Section 148 of the Act and contending that the addition was bad in law.

5.

On, the other hand the ld. DR supported the orders of the lower authorities and argued that the appeal should be dismissed with costs because of the assessee’s failure to properly participate in proceedings.

6.

We, after hearing rival submissions and examining the material available on record, we observed that the appeal had been decided ex parte because the assessee had not properly responded before the Ld. CIT(A), and the assessee also failed to substantiate the claim adequately. Considering the interest of justice and fair play, we deemed it appropriate to restore the matter back to the file of the AO for fresh examination. The assessee was also directed to cooperate and comply with notices issued by the authorities without fail.

7.

Accordingly, the appeal of the assessee was allowed for statistical purposes.

Order is Pronounced in the open Court on 06/07/2026.

Sd/SSd/-- Sd/- Sd/- [ Dr. Arjun Lal Saini ] [ Shri Sonjoy Sarma ] लेखा सद�य/Accountant Member �याियक सद�य/Judicial Member राजकोट/Rajkot िदनांक/ Date: 06/07/2026 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//

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ITA No. 171/RJT/2026 Mansukhbhai Arvadia Sr. Private Secretary ITAT, Rajkot

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