PARESHBHAI SAVJIBHAI KHUNT,RAJKOT vs. INCOME TAX OFFICER WARD - 2(2)(3), RAJKOT

ITA 842/RJT/2025Status: DisposedITAT Rajkot19 October 2026AY 2019-204 pages
AI SummaryAllowed

What were the facts?

These two appeals, ITA No. 842/Rjt/2025 and ITA No. 575/Rjt/2026, by assessees Pareshbhai Savjibhai Khunt and Savan Dayalal Ladani respectively, pertain to Assessment Year 2019-20. They challenge orders passed by the National Faceless Appeal Centre (NFAC), Delhi/Commissioner of Income Tax (Appeals) under section 250 of the Income-tax Act, 1961. These orders arose from assessment orders passed by the Assessing Officer under section 147 of the Act. The core issue involves donations made by the assessees to political parties. Pareshbhai Savjibhai Khunt donated Rs. 2,20,000/-, and Savan Dayalal Ladani donated Rs. 1,50,000/-.

What did the Tribunal hold?

The Tribunal held that the issue is squarely covered in favour of the assessees by the decisions of the Co-ordinate Benches. Specifically, the Tribunal followed the precedent set in the case of Nihil Nitinbhai Bhuptani (ITA No. 479/Rjt/2025, AY 2019-20) and Ashish Dubey vs. ACIT (ITA No. 222/Del/2020, AY 2015-16). The reasoning was that once the assessee establishes, through material evidence like bank statements and receipts, the fact of payment of donation to a registered political party via banking channels, the assessee cannot be faulted for the subsequent failure of the political party to account for the donation in its return. The Tribunal found no change in facts or law and noted that the revenue failed to produce any material to controvert these findings. Therefore, the additions made by the Assessing Officer were deleted. The appeals were allowed with consequential relief.

What were the issues?

1. Whether the Tribunal should allow deduction for donations made to political parties when the donation is made through banking channels and the political party was effective at the time of donation, despite the political party potentially failing to account for the donation in its return of income? (Question of law and fact, concerning Section 80G of the Income-tax Act, 1961). Assessee's Contention: The assessees argued that the donations were made through banking channels to effective political parties. They relied on the ITAT Rajkot Bench decision in Nihil Nitinbhai Bhuptani (ITA No. 479/Rjt/2025, AY 2019-20) and the Delhi Bench decision in Ashish Dubey vs. ACIT (ITA No. 222/Del/2020, AY 2015-16), which held that the donor cannot be faulted if they have provided evidence of payment and the recipient party fails to account for it. Revenue's Contention: The revenue relied on the findings of the Assessing Officer.

Which sections of the Income-tax Act were involved?

Section 250,Section 147,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC”

Before: Dr. Arjun Lal Saini

For Appellant: Shri Digant Kiyada, Ld. AR
For Respondent: Shri Ganesh Iyer, Ld. Sr. DR
Hearing: 15/10/2026Pronounced: 19/10/2026

Heard together (2 matters)

ITA No. 842/Rjt/2025
ITA No. 575/Rjt/2026

Read from the judgment's own cause title. This page is filed under one of them.

Per, Dr. Arjun Lal Saini, AM: Captioned two appeals filed by the different assessees, pertaining to assessment year (AY) 2019-20, are directed against the separate or

The order continues below.

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