VINAYAK KIRITKUMAR BHATT,RAJKOT vs. ITO WD 2(2)(1), RKT, RAJKOT

ITA 907/RJT/2026Status: DisposedITAT Rajkot30 September 2026AY 2024-257 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee had submitted additional evidence before the CIT(A) which was not considered. The CIT(A) was required to examine this application under Rule 46A of the Income-tax Rules, 1962. If admitted, the AO should have been given an opportunity to examine and rebut the evidence. The failure to do so, and the absence of a remand report from the AO, constituted a violation of Rule 46A(3) and principles of natural justice. Consequently, the matter was restored to the file of the CIT(A) with a direction to examine the application for additional evidence in accordance with Rule 46A, obtain comments/remand report from the AO after granting him an opportunity to examine and rebut, confront the assessee with the remand report if necessary, and then adjudicate the grounds afresh. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Vinayak Kiritkumar Bhatt, filed an appeal against the order of the National Faceless Appeal Centre (NFAC)/CIT(A) for Assessment Year 2024-25. The appeal arose from an assessment order passed by the Assessing Officer (AO) under Section 143(3) of the Income Tax Act, 1961. The assessee had claimed a deduction of Rs. 6,00,000 under Section 80GGC for a donation made to Rashtriya Yuva Janadhikar Party. The AO disallowed this deduction, treating the donation as not genuine and part of an accommodation entry arrangement. The CIT(A) upheld the AO's disallowance, dismissing the assessee's appeal.

What were the issues?

1. Whether the Learned CIT(A) erred in upholding the disallowance of deduction of Rs. 6,00,000 claimed by the Assessee under Section 80GGC of the Income Tax Act, 1961, despite the donation being made through banking channels and supported by documentary evidence. 2. Whether the Learned CIT(A) erred in disregarding documentary evidence and confirming the disallowance on a new basis of alleged 'accommodation entry / cash-back' arrangement, violating principles of natural justice. 3. Whether the Learned CIT(A) erred in dismissing the appeal without verifying additional evidence filed by the Assessee during appellate proceedings, which established the registration of the political party. Assessee's Contentions: The assessee argued that the donation was genuine, made through banking channels, and satisfied all conditions of Section 80GGC. The CIT(A) erred by abandoning the assessment basis and introducing a new one. Additional evidence proving the political party's registration was disregarded, violating natural justice. The assessee relied on ITAT Ahmedabad and Rajkot decisions. Revenue's Contentions: The revenue contended that the donation was bogus and the appeal should be dismissed.

Which sections of the Income-tax Act were involved?

Section 80GGC,Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
आयकर अपीलीय अिधकरण, राजकोट "यायपीठ, राजकोट । In The Income Tax Appellate Tribunal, “SMC” Rajkot Bench, Rajkot Before Dr. Arjun Lal Saini, Accountant Member आयकरअपीलसं./ITA No. 907/Rjt/2026 [ "नधा"रणवष"/Assessment Year: 2024-25 ] Vinayak Kiritkumar Bhatt, ITO WD 2(2)(1), RKT Mombasa Avenue - 3, Krupa, IT Office, New Aayakar Vs. Raiya Ring Road, B/H Telephone Bhawan Vatiaka, Rajkot, Exchange, Rajkot, Gujarat-360005 Rajkot, Gujarat- 360001 "थायी लेखा सं./जी आइ आर सं./PAN/GIR No.: AJEPB6853F (अपीलाथ"/Assessee) (""यथ"/Respondent) Assessee by : Shri Ketan Raja, Ld. AR Respondent by : Shri Shishir Kumar, Ld. Sr. DR Date of Hearing : 30/07/2026 Date of Pronouncement : 30/09/2026

:: ORDER :: Per,Dr. Arjun Lal Saini, AM: Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2024-25, 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/Commissioner of Income-tax (Appeals) [in short ‘NFAC/Ld.CIT(A)’], dated 27.04.2026, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) of the Act, dated 17.11.2025. 2. The grounds o

The order continues below.

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