MUKESH SOMANI,BHILWARA vs. ASSESSING OFFICER, ITO, WD-1, BHL

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ITA 1140/JODH/2025Status: DisposedITAT Jodhpur02 June 2026AY 2019-204 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the disallowance was unjustified as the Assessing Officer failed to provide evidence of the political party receiving commission or returning money to the assessee, or any direct nexus of benefit to the assessee. Therefore, the addition made by the AO was deleted.

What were the facts?

The assessee claimed a deduction of Rs. 1,00,000/- under Section 80GGC for a donation to a political party. The Assessing Officer disallowed this deduction based on information that the party was involved in providing accommodation entries for bogus donations.

What were the issues?

Whether a deduction under Section 80GGC for donation to a political party can be disallowed solely on the allegation of accommodation entries without specific evidence of benefit to the assessee or refund of donation.

Which sections of the Income-tax Act were involved?

Section 80GGC,Section 147,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

For Appellant: Shri Akhil Kakhani, CA and Deepak, CA (Physical), Smt. Seema Meena, CIT-DR (Virtual)

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE DR. MITHA LAL MEENA, HON’BLE ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, HON’BLE JUDICIAL MEMBER ITA No. 1140/Jodh/2025 (Assessment Year – 2019-20) Mukesh Somani Assessing Officer Somani Mention, Near Bhilwara Bharhmani Sweet Shastri Nagar, Bhilwara- 311001 PAN No. AEAPS 8696G Assessee by Shri Akhil Kakhani, CA and Deepak Taparia, CA (Physical) Smt. Seema Meena, CIT-DR (Virtual) Revenue by Date of Hearing 19 / 05 / 2026 Date of Pronouncement 02 / 06 / 2026 ORDER DR. MITHA LAL MEENA, A.M.: This appeal by assessee is filed against the order of National Faceless Appeal Centre Delhi [hereinafter referred to as NFAC/ CIT(A)] dated 05.09.2025 with respect to assessment year 2019-20 challenging therein confirmation of the disallowance of Rs. 1,00,000/- u/s 80GGC in respect of donation to Rashtriya Samajwadi Party (Secular).

2.

This appeal was heard as a covered matter by the decision delivered by ITAT Raipur Bench in the case of Assistant Commissioner of Income Tax Vs. Anuj

2 ITA No. 1140/Jodh/2025 Asst. Year: 2019-20 Prakash Gupta [2026] 183 taxmann.com 392 (Raipur-Trib.) where the Tribunal has observed that where deduction u/s 80GGC for donation to political party was disallowed merely on alleging accommodation entries, but no evidence show refund of donation or any direct nexus of benefit to assessee, such disallowance was unjustified and liable to be deleted. The relevant para of the judgment reads hereunder:

“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.” 3. In the present case, assessee has claimed deduction of Rs. 1,00,000/- u/s 80GGC of the Income Tax Act, 1961 for donation given to Rashtriya Samajwadi Party (Secular) based on the information received from investigation wing, Ahmedabad that the said political party was involved in providing accommodation entries of bogus donation. The case of the assessee was reopened u/s 147/148 of the Act, wherein the AO had disallowed the deduction of Rs. 1,00,000/- u/s 80GGC of the Act.

3 ITA No. 1140/Jodh/2025 Asst. Year: 2019-20 4. The Department allegation was that the said political party to which the assessee had made donation was tainted party providing bogus accommodation entries through donation. However, the AO had not brought on record, any evidence which suggests that the said political party has derived commission and has paid money back to the assessee through backdoor. Thus, nothing has been brought on record by the AO to establish the direct nexus regarding benefit derived by the assessee from the said political party while making the said donation of Rs. 1,00,000/-.

5.

Following the ITAT Raipur Bench decision on parity of facts, we delete the addition of Rs. 1,00,000/- made by the AO u/s 80GGC of the Act.

6.

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

Order pronounced in the open court on 02/06/2026.

Sd/- Sd/- (SUDHIR PAREEK) (DR. MITHA LAL MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 02/06/2026. Nimisha Sr. PS True Copy

4 ITA No. 1140/Jodh/2025 Asst. Year: 2019-20

Copies to : (1) The appellant. (2) The respondent. (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File BY ORDER,

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