TARUNABEN MAGANLAL BHUT,NAVAGAM vs. ITO WARD 2(2)(1), RAJKOT, RAJKOT

ITA 673/RJT/2026Status: DisposedITAT Rajkot21 October 2026AY 2024-254 pages
AI SummaryAllowed

What were the facts?

The assessee, Tarunaben Maganlal Bhut, filed an appeal against the order of the National Faceless Appeal Centre (NFAC), Delhi, for Assessment Year 2024-25. The NFAC had upheld the assessment order passed by the Assessing Officer (AO) under section 147 of the Income-tax Act, 1961. The AO's order, dated 12.01.2026, confirmed a disallowance of ₹5,00,000 claimed by the assessee as a deduction under section 80GGC. The assessee's appeal before the NFAC also failed, leading to the present appeal before the Income Tax Appellate Tribunal (ITAT), Rajkot Bench. The core dispute revolves around the genuineness of a donation made to a political party and the subsequent denial of deduction.

What did the Tribunal hold?

The Tribunal allowed the appeal, deleting the addition made by the Assessing Officer. The Tribunal respectfully followed the binding precedent of the Co-ordinate Bench in the case of Ashish Dubey vs. ACIT (supra). In that case, the Tribunal had observed that the assessee had provided a receipt of donation, PAN of the political party, its registration under Section 29A of the Representation of the People Act, 1951, its ITR, and confirmation by email. The assessee's bank statement corroborated the donation made through banking channels. The Tribunal held that once the assessee established the fact of payment of donation and received a receipt, the mere fact that the political party failed to account for the donation received should not fault the assessee as a donor, thereby denying the deduction. The Tribunal found no reason to take a different view and noted that the Revenue had not produced any material to controvert the findings in the Ashish Dubey case. Therefore, the addition made by the AO was deleted.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) erred in upholding the assessment order and confirming the disallowance of ₹5,00,000 claimed under section 80GGC of the Income-tax Act, 1961, rendering the order bad in law. 2. Whether the Commissioner of Income Tax (Appeals) erred in holding that principles of natural justice were not violated, despite the non-provision and non-confrontation of adverse material, including third-party statements, and in deeming the show cause notice adequate. 3. Whether the Commissioner of Income Tax (Appeals) erred in confirming the disallowance under section 80GGC by holding the donation as not genuine, despite the assessee satisfying statutory conditions, including payment through banking channels to a registered political party. Assessee's Contentions: The assessee argued that the donation was made to a political party registered under applicable law, paid through banking channels, and not in cash. The assessee cannot be held responsible for any alleged non-compliance by the political party. The assessee relied on the Tribunal's order in Ashish Dubey vs. ACIT (ITA No. 222/Del/2020) for AY 2015-16, where a similar donation to a political party through banking channels was allowed. The assessee contended that all statutory conditions were satisfied and the primary onus was discharged by providing bank statements and receipts. Revenue's Contentions: The Revenue relied on the orders of the authorities below.

Which sections of the Income-tax Act were involved?

Section 147,Section 250,Section 80GGC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC”

Before: Dr. Arjun Lal Saini

For Appellant: Shri Gaurang Khakhar, Ld. AR
For Respondent: Shri Ganesh Iyer, Ld. Sr. DR
Hearing: 15/10/2026Pronounced: 21/10/2026

Per, Dr. Arjun Lal Saini, AM: Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2024-25, is directed against the order passed under section 250 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 23.04.2026 by the National Faceless Appeal Centre (NFAC), Delhi/Commissioner of Income Tax (Appeals) [in short ‘Ld.CIT(A)’] which in turn arises out of an assessment order passed by the Assessing Officer (in short ‘AO’) u/s. 147 of the Act dated 12.01.2026. 2. The Grounds of Appeal raised

The order continues below.

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