SURESHKUMAR PRAHLADBHAI PATEL,GUJARAT vs. ITO WARD 5(3)(2), AHMEDABAD, GUJARAT

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ITA 411/AHD/2026Status: DisposedITAT Ahmedabad19 June 2026AY 2019-203 pages
AI SummaryRemanded

What did the Tribunal hold?

The tribunal found that the reopening of the assessment under Section 147 was justified. However, it noted that the Assessing Officer did not properly verify the details of the donation and subsequent cash receipts, thus remanding the matter for fresh adjudication.

What were the facts?

The assessee claimed a deduction for a donation of Rs. 2,51,000/- to Yuva Janjagriti Party. The Assessing Officer reopened the case based on information that the party issued bogus donation receipts and returned cash to donors. The CIT(A) dismissed the assessee's appeal.

What were the issues?

Whether the reopening of assessment under Section 147 was valid and whether the donation claim under Section 80GGC was substantiated after proper verification of the transaction details.

Which sections of the Income-tax Act were involved?

Section 147,Section 148A,Section 148,Section 80GGC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD ‘SMC’ BENCH, AHMEDABAD

For Appellant: Shri Chirag Shah, AR
For Respondent: Shri Girish Parihar, Sr. DR
Hearing: 02.04.2026

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD ‘SMC’ BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.411/AHD/2026 (Assessment Year: 2019-20) Mr. Sureshkumar Prahladbhai Patel, Income Tax Officer, Ward-5(3)(2), 8, Akash Ganga Bunglows Part-2, Income Tax Department, Nr. Saint Mery School Naroda, Global Odyssey, Ahmedabad, Vs. Jodhpur Village, Gujarat Vejalpur, Ahmedabad Gujarat PAN: AAYPP4396C (Appellant) : (Respondent) Assessee by : Shri Chirag Shah, AR Respondent by : Shri Girish Parihar, Sr. DR Date of Hearing : 02.04.2026 : 19.06.2026 Date of Pronouncement O R D E R PER : SUCHITRA KAMBLE, J M: The appeal filed by the assessee is against the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [in short “CIT(A)”] dated 18.12.2025 for the Assessment Year (in short “AY”) 2019-20.

2.

The assessee has raised the following grounds of appeal: “1. The appellant craves to reserve his right to add, alter, amend, OR DLEETE any ground of appeal during the course of hearing. 2. The assessment order passed u/s 147 of Income Tax Act by the Assessing Officer and confirmed by the first appellate authority u/s 250 is bad in law and deserved to be uncalled for. 3. The assessing officer and appellate authority has erred in law and on facts in making and confirming respectively the addition of Rs.2,51,000/-. The same deserves to be deleted.”

ITA No.411/AHD/2026 Mr. Sureshkumar Prahladbhai Patel 3. As per the information, the Assessing Officer (in short “the AO”) observed that the assessee made donation of Rs.2,51,000/- to Yuva Janjagriti Party during the A.Y. 2019-20. A search action u/s 132 of the Income Tax Act, 1961 (in short “the Act”) on registered unrecognized political parties and post search inquiries made by the Department in this regard, established that Yuva Janjagriti Party is issuing receipt of donation in lieu of cheque and later on returning the amount to donor in cash after deducting certain amount for providing the bogus donation receipt. Order u/s 148A(d) of the Act dated 15.04.2023 was passed. Subsequently, the case of the assessee was reopened u/s 147 of the Act by issuance of notice u/s 148 of the Act dated 15.04.2023. In response to notice issued u/s 148 of the Act dated 15.04.2023, the assessee filed return of income for A.Y. 2019-20 on 27.04.2023 by declaring the total income at Rs.15,40,800/-. The assessee filed the submissions along with the details. After considering the same the AO made addition of Rs.2,51,000/- thereby disallowance of donation claimed u/s 80GGC of the Act.

4.

Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.

5.

The Ld. Authorised Representative (in short “Ld. AR”) for the assessee submitted that the assessee has rightly donated and claimed the deduction u/s 80GGC of the Act. The political party is a registered party and therefore the receipt of donation issued by the political party including its PAN, address and acknowledgement along with the assessee’s bank statement reflecting the transaction as well as copy of Income Tax Return and computation of income showing the deduction claimed was very well before the AO. The assessee was not at all involved in any bogus activities as alleged by the AO.

6.

The Ld. Departmental Representative (in short “Ld. DR”) for the Revenue relied upon the assessment order and the order of the Ld. CIT(A).

7.

Heard both the parties and perused all the relevant materials available on record. It is pertinent to note that as regards to ground No.2, the reopening u/s 147 of the Act was rightly invoked as the information as well as the details 2

ITA No.411/AHD/2026 Mr. Sureshkumar Prahladbhai Patel of search conducted at the said political party has also reflected the donation given by the assessee and in fact the assessee, at later stage after the inquiry during assessment proceedings, has accepted that the assessee made the donation to the said political party. Thus, ground No.2 is dismissed.

8.

Now coming to the merits of the case, the assessee has given the details of bank statements along with donation receipts as well as the details of political party. From the perusal of the assessment order, it appears that the details of the bank statements were not properly verified by the AO in respect of the subsequent receipt of the said amount or the details of prior receipt of any cash. Thus, details require verification. Therefore, the matter is remanded back to the file of the AO for proper verification of these details and for adjudication of the issue on merit as per Income Tax Act. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice.

9.

In result, appeal of the assessee is partly allowed for statistical purpose. Order pronounced in the open court on 19.06.2026

Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad; Dated: 19.06.2026 * Kishore, Sr. P.S. Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT- concerned 4. DR, ITAT, Ahmedabad 5. Guard File By order,

Assistant Registrar/Sr.PS/PS ITAT, Ahmedabad Bench 3

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