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Facts
The assessee challenged the disallowance of Rs. 500,000 as a donation to a registered political party, arguing that the Assessing Officer and CIT(A) denied proper opportunity and violated natural justice principles. The CIT(A) had confirmed the disallowance.
Held
The appeal was dismissed as withdrawn by the assessee. The assessee informed the Tribunal that the CIT(A) had already set aside the appeal to the AO for de novo adjudication as per Section 251(1)(a) of the Income Tax Act, rendering the present appeal unnecessary.
Key Issues
The primary issue was the alleged erroneous disallowance of a donation and violation of natural justice by lower authorities. The secondary issue concerned the impact of the assessee's withdrawal of the appeal due to the case being remanded for de novo adjudication.
Sections Cited
251(1)(a)
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Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE- & SHRI SIDDHARTHA NAUTIYAL
[PAN: ADCPD8382K] (Appellant) .. (Respondent) Appellant by: Shri Parin Shah, AR Respondent by: Shri Ravindra, Sr. DR Date of Hearing 27.11.2025 Date of Pronouncement 27.11.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT: - This appeal is filed by the Assessee against the appellate order dated 28.03.2025 passed by the Commissioner of Income Tax(Appeal)/National Faceless Appeal Centre(NFAC) Delhi, relating to the Assessment Year 2019-20.
The assessee has raised the following grounds of appeal:
“AO has wrongly disallowed genuine donation of Rs.500,000/- given to the registered political party purely on assumption without giving me an opportunity of cross examination. The AO has not followed the principle of natural justice and A.Y 2019-20 2 his act is out ambit of law and the Commissioner of Income Tax (Appeal) has also ignore the facts of case and not given justice to my case 2. The Commissioner of Income Tax (Appeal) has not given me an opportunity to submit the statement of facts and grounds of appeal
since the assessee has requested the Commissioner of Income Tax (Appeal) to adjourn the hearing to another date convenient to him, inspite of assessee’s request he has not given the adjournment and wrongly passed the order confirming addition of Rs.500,000/-.
3. The Commissioner of Income Tax (Appeal) failed to provide sufficient opportunity to the appellant to explain the nature of the transaction, thereby violating principles of Natural Justice. The addition has been considered by CIT(Appeal) without proper reasoning or legal justification, ignoring the documents and explanations provided to the Assessing Officer”.
At the outset, we notice that the assessee has filed a letter dated 26.11.2025 stating its intension to withdraw the appeal. The relevant extract of the letter is reproduced as under:
…in the present case, the CIT(A) has set aside the appeal to the file of AO as per Section 251(1)(a) of the Act for denovo adjudication. Pursuant to same, AO initiated proceedings (Relevant notices are attached herewith) and accordingly, appellant prays for withdrawal of appeal. Your honour is requested to allow for withdrawal of appeals and oblige…
In view of the above, we dismiss the appeal of the assessee as withdrawn.
The order is pronounced in the open Court on 27.11.2025. (SIDDHARTHA NAUTIYAL) VICE-PRESIDENT () Ahmedabad; Dated 27.11.2025 A.Y 2019-20 3