SAURABH PRAVINBHAI PATEL AND BRIJESH PRAVINBHAI PATEL AOP,ANAND vs. ACIT, ANAND CIRCLE, ANAND

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ITA 1020/AHD/2023Status: DisposedITAT Ahmedabad05 March 2025AY 2016-173 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal considered the submissions made by the assessee and noted that the assessee had opted for settlement under the Vivad Se Vishwas Scheme, 2024 (VSVS) and had been issued Form No. 2 by the competent authority. The assessee requested to withdraw both appeals. The Departmental Representative raised no objections. Therefore, the Tribunal dismissed both appeals as withdrawn. The assessee was granted liberty to seek restoration of the appeals in case of any difficulty in implementing the Vivad Se Vishwas Scheme. No specific finding was made on the merits of the disallowances under Section 80GGC, as the appeals were withdrawn.

What were the facts?

The assessee, Saurabh Pravinbhai Patel and Brijesh Pravinbhai Patel AOP, filed two appeals before the Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, for Assessment Years (AYs) 2016-17 and 2017-18. The appeals challenged the orders of the Commissioner of Income Tax (Appeals) [CIT(A)], NFAC, Delhi, dated 12/10/2023. These orders confirmed the disallowance of deductions claimed under Section 80GGC of the Income Tax Act, 1961, for donations made to political parties. For AY 2016-17, a deduction of Rs. 35,00,000/- for a donation to Rashtriya Samajwadi Party was disallowed. For AY 2017-18, a deduction of Rs. 25,00,000/- for a donation to Rashtriya Komi Ekta Party was disallowed. The assessee subsequently submitted a letter stating its opting for settlement under the Vivad Se Vishwas Scheme, 2024 (VSVS) and requested to withdraw both appeals.

What were the issues?

1. Whether the disallowance of deduction under Section 80GGC of the Income Tax Act, 1961, in respect of donations made to political parties for AY 2016-17 is justified? 2. Whether the disallowance of deduction under Section 80GGC of the Income Tax Act, 1961, in respect of donations made to political parties for AY 2017-18 is justified? Assessee's contentions: The assessee submitted a letter dated 4th March 2025, stating that it has opted for settlement under the Vivad Se Vishwas Scheme, 2024 (VSVS) and has been issued Form No. 2 by the competent authority. Based on this, the assessee requested to withdraw both appeals. Revenue's contentions: The Departmental Representative (DR) raised no objections to the assessee's request for withdrawal.

Which sections of the Income-tax Act were involved?

Section 80GGC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: MS. SUCHITRA KAMBLE & SHRI MAKARAND V. MAHADEOKAR

For Appellant: Shri Prakash D. Shah, AR
For Respondent: Shri Kavan Limbasiya, Sr.DR
Hearing: 04/03/2025Pronounced: 05/03/2025

PER MAKARAND V. MAHADEOKAR, AM: These two appeals filed by the assessee pertain to the Assessment Years (AYs) 2016-17 and 2017-18 against the orders passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)"], dated 12/10/2023 confirming the disallowance of deduction under section 80GGC of the Income Tax Act, 1961 [hereinafter referred to as “the Act"], in respect of donations made to political Asst. Years: 2016-17 & 2017-18

2.

For A.Y. 2016-17, the assessee claimed a deduction of Rs.35,00,000/- for a donation to Rashtriya Samajwadi Party, which was disallowed. For A.Y. 2017-18, the assessee claimed a deduction of Rs.25,00,000/- for a donation to Asst. Years: 2016-17 & 2017-18

7.

In the result, both the appeals for AYs 2016-17 and 2017-18 (ITA Nos. 1020 & 1021/Ahd/2023) are dismissed as withdrawn. Order pronounced in the Open Court on 5th March, 2025 at Ahmedabad. (MAKARAND V. MAHADEOKAR) ACCOUNTANT MEMBER अहमदाबाद/Ahmedabad, दिनांक/Dated 05/03/2025 टी. सी. नायर, व.नि. स. / T.C. NAIR, Sr. PS आदेश की प्रतिलिपि अग्रेषित/

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