SAGAR ARVIND BACHAL,BENGALURU vs. INCOME TAX OFFICER WARD 2, SATARA

PER Dr. DIPAK P. RIPOTE, A.M : This is an appeal filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), NFAC, Delhi [Ld.CIT(A)], passed u/s. 250 of the Income Tax Act, 1961 (‘the Act’) for AY 2023-24 on 08.10.2025, emanating from the Assessment Order u/s 143(3) r.w.s. 144B of the Act, dated 11.03.2025.

Findings and analysis:

ITA No. 3232/PUN/2025

“4.7.1. The assessee claimed deduction u/s 80GGC for the amount of Rs. 4,00,000/- in respect of donation to political party (National Sarvasamaj Party) in the updated return filed u/s 139(5) of the AY 2023-24. In the previous return filed u/s 139(4) for the same AY, the assessee claimed only an amount of Rs. 3,00,000/- as deduction u/s 80GGC. Further, the assessee has not claimed any deduction u/s 80GGC/80G in the preceding three years i.e. AY 2020-21, AY 2021-22 and AY 2022-23. In the event of not in the regular nature of giving donation and claiming an excess amount in the updated return when compared to original return, there arises a question on validity and credibility of the assessee claim and the donation paid in order to claim deduction.

4.7.2. The assessee has not submitted how he came to know about the political party, what political activities he has noticed and the reason for donating exclusively for that political party, which seems to be not actively participating in political activities when compared to other political parties. Further, the assessee failed to explain why he has not disclosed the donation given to the Political parties before the Employer and obtain deduction in Form 12BB/Form 16.

4.7.3. The assessee claims that he had donated a significant portion of his salary income to not so recognised political party despite not having any previous history of making donations to any political party. Considering the above, suspicion has arisen on whether the donation is really made and is part of surface level transaction in order to simply deduction u/s 80GGC.

4.7.4. There are instances as revealed from the search u/s. 132 of the Income-Tax Act, was conducted in the case of Registered Unrecognised Political Parties (RUPPs) group of Ahmedabad on 07.09.2022 that the donations paid by the assessee to Political Parties for claiming bogus deduction u/s. 80GGC of the Act which are then re-routed back to the assessee in cash. Further, the respective persons who run the political party has admitted the fact that party was not carrying out any kind of political activities and the sole purpose of receiving donations in the bank accounts was to return the same either in cash or through banking channel, after deducting due commission, with the help of layers of bank accounts of bogus proprietorship concerns and number of agents involved in between, facilitating large number of beneficiaries in claiming bogus deductions u/s 80GGB/80GGC of the I.T. Act, 1961.

4.8. Conclusion Drawn:

4.8.1. In view of the above, the claim of the assessee that the intention of the donation and its compliance with section 80GGC is not found to be acceptable as the same might have been routed back in the way of

ITA No. 3232/PUN/2025

cash in any other form. Simply making a donation for sake of claiming deduction and submitting the receipts for the same and rerouting the money does not seems to be of good intent in assisting the democratic process. Hence the same does not seem to be in compliance with section 80GGC and the entire process of the assessee is degrading the very essence of the deductions given by the Act to the eligible assessee. Simply quoting 80G/80GGC for his convenience sake is not tenable. Considering the available circumstances and on rational examination of previous ITR filed by the assessee, it is seen that the assessee has made donation to the political party for claiming bogus deduction u/s. 80GGC of the Income Tax Act, 1961which are then re- routed back to the assessee in cash or any other mode, or the payment itself has not be done (simply commission paid to the party in order to get the receipt for the Donation claim) as the assessee has not submitted any documentary evidence on how he came to know about the party and how the transactions has been made. 4.8.2. In view of the above, the deduction claimed u/s 80GGC to the tune of Rs. 4,00,000/- is disallowed and the same is added back to the returned income of the assessee for AY 2023-24. The assessment is completed u/s 143(3) r.w.s 144B of the Income Tax Act, 1961. (Addition: Rs. 4,00,000/-)” 3. The Section 80GGC is reproduced here as under : “Deduction in respect of contributions given by any person to political parties. 80GGC. In computing the total income of an assessee, being any person, except local authority and every artificial juridical person wholly or partly funded by the Government, there shall be deducted any amount of contribution made by him, in the previous year, to a political party for an electoral trust]: [Provided that no deduction shall be allowed under this section in respect of any sum contributed by way of cash.] Explanation. For the purposes of sections 80GGB and 80GGC, "political party" means a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951).”

ITA No. 3232/PUN/2025

but AO has not brought on record any evidence to prove the same.

Order pronounced in the open Court on 25th August, 2026

Sd/- Sd/- (PAVAN KUMAR GADALE) (Dr. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER

पुणे/Pune; दिन ांक/Dated : 25-08-2026 Ravi Kumar Digitally signed by Ravi Kumar Ravi Kumar Date: 2026.08.25 16:18:40 +05'30' आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant 2. प्रत्यर्थी / The Respondent 3. The concerned Pr. CIT, Pune 4. DR, ITAT, ‘B’ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अदिकरण,पुणे / ITAT, Pune