AMIT KUMAR ROY,KOLKATA vs. ITO, WARD 62(1), KOLKATA

ITA 2209/KOL/2025Status: DisposedITAT Kolkata07 October 2026AY 2019-202010 pages
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What did the Tribunal hold?

The Tribunal held that Ground No. 2, concerning the disallowance of deduction under Section 80GGC for donation to Yuva Jan Jagruti Party, is dismissed. The AO's finding that the donation was bogus was based on admissions recorded under Section 132(4) during search proceedings, which have evidentiary value. The assessee failed to provide any further evidence to controvert these findings. The Tribunal affirmed the CIT(A)'s decision on this issue. Regarding Ground No. 3, relating to interest on borrowed capital for house construction, the issue is remanded to the AO. The assessee needs to file necessary evidence regarding the nature of construction to avail the benefit of deduction on interest payment for a housing loan. This ground is partly allowed for statistical purposes. For Ground No. 4, the AO is directed to allow the required credit of taxes deducted at source. This ground is allowed for statistical purposes. Ground No. 7, concerning the deduction for professional tax, is also allowed for statistical purposes, with the AO directed to allow it as per law upon the assessee filing the required evidence. Other grounds were considered academic or consequential and did not require separate adjudication. The appeal is partly allowed for statistical purposes.

What were the facts?

The assessee, Amit Kumar Roy, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Kolkata, against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi, for Assessment Year 2019-20. The appeal challenges the disallowance of deductions and additions made by the Assessing Officer (AO) under Section 147 of the Income Tax Act, 1961. The AO had initiated reassessment proceedings based on information from a search on the RUPPs group of Ahmedabad, which unearthed a bogus donation racket. The assessee had claimed a deduction of ₹2,00,000/- under Section 80GGC for a donation to Yuva Jan Jagruti Party, which the AO disallowed, finding it to be a bogus transaction based on admissions from the party's president and other facilitators during search proceedings. The AO also disallowed a loss of ₹1,82,042/- claimed on account of interest paid on borrowed capital for house construction. The assessee's total income was assessed at ₹10,56,276/-.

What were the issues?

The Tribunal had to decide the following issues: 1. Whether the disallowance of deduction under Section 80GGC of ₹2,00,000/- for donation to Yuva Jan Jagruti Party, found to be bogus, is justified. - Assessee's contention: The donation was made to a registered political party following prescribed procedures, and post-compliance with Section 80GGC, the deduction cannot be disallowed. Relied on various case laws. - Revenue's contention: The donation was bogus, as established by search proceedings and admissions from the party's president and facilitators. Form No.-29C was not submitted to the Election Commission. 2. Whether the disallowance of ₹1,82,042/- representing interest paid on borrowed capital for house construction is justified. - Assessee's contention: The nature of the loan or lending institution is not important; the borrower-lender relationship and interest payment are key. Submitted a bank certificate stating the loan could be used for any purpose and a letter from HDFC Bank. - Revenue's contention: The loan was a personal loan, not a housing loan, and no evidence was filed to prove its use for house construction. 3. Whether credit for taxes deducted at source (TDS) should be granted. 4. Whether interest under Sections 234B and 234C is leviable. 5. Whether penalty proceedings under Section 270A are to be initiated. 6. Whether a deduction of ₹2,400/- for professional tax, not claimed during ITR filing, should be considered.

Which sections of the Income-tax Act were involved?

Section 147,Section 80GGC,Section 132,Section 132(4),Section 292C,Section 234B,Section 234C,Section 270A,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘SMC’ BENCH AT KOLKATA

Before: SHRI YOGESH KUMAR US & SHRI RAKESH MISHRA

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 [the 'Act'] for AY 2019-20 dated 30.07.2025. ITA No(s). 2209/KOL/2025 Assessment Year(s) 2019-20 Amit Kumar Roy.

2.

The assessee is in appeal before the T

The order continues below.

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