JAY CHETAN KOTHARI ,RAJKOT vs. )INCOME TAX OFFICER WARD-1(1)(1), RAJKOT

ITA 1173/RJT/2026Status: DisposedITAT Rajkot09 October 2026AY 2024-253 pages
AI SummaryAllowed

What were the facts?

The assessee, Jay Chetan Kothari, filed an appeal against the order of the National Faceless Appeal Centre (NFAC) Delhi/Commissioner of Income-tax (Appeals) dated 19.08.2026. This order confirmed the disallowance of a deduction of Rs. 6,00,000/- claimed by the assessee under section 80GGC of the Income-tax Act, 1961. The disallowance arose from a contribution made to a political party. The assessment year in question is 2024-25. The original assessment order was passed by the Assessing Officer under section 143(3) of the Act on 02.03.2026.

What did the Tribunal hold?

The Tribunal held that the issue was squarely covered in favour of the assessee by the decision of the ITAT Rajkot Bench in the case of Nikhil Nitinbhai Bhuptani (supra). The Tribunal noted that the facts of the present case were similar to the cited case. In the Nikhil Nitinbhai Bhuptani case, the Tribunal had observed that the assessee had provided evidence of donation to a registered political party through banking channels, including receipts, PAN, and recognition from the Election Commission of India. The Tribunal further held that even if the political party failed to account for the donation in its return, the assessee, as a donor, could not be faulted for denying the deduction. Since the revenue was unable to produce any materials to controvert these findings, the Tribunal respectfully followed the binding precedent and deleted the addition made by the Assessing Officer. The appeal of the assessee was allowed.

What were the issues?

1. Whether the learned Commissioner of Income Tax (Appeals) erred in law and on facts in confirming the disallowance of the deduction of Rs.6,00,000/- claimed by the Appellant under section 80GGC of the Income-tax Act, 1961, in respect of the contribution made to a political party. Assessee's contentions: The assessee argued that the issue is squarely covered in its favour by the decision of the ITAT Rajkot in the case of Nikhil Nitinbhai Bhuptani (ITA No.479/Rjt/2025, AY 2019-20, dated 30.10.2025). The assessee stated that the donation was made to a political party through banking channels, and the political party's certificate was effective at the time of donation, leading to the deletion of the addition by the Tribunal in the cited case. Revenue's contentions: The revenue relied on the findings of the Assessing Officer.

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

Income Tax Appellate Tribunal, “SMC”

Before: Dr. Arjun Lal Saini

For Appellant: Shri R. D. Lalchandani, Ld. AR
For Respondent: Shri Ganesh Iyer, Ld. Sr. DR
Hearing: 05/10/2026

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 19.08.2026, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) of the Act, dated 02.03.2026. 2. Grounds of ap

The order continues below.

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