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

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ITA 1021/AHD/2023Status: DisposedITAT Ahmedabad05 March 2025AY 2017-20183 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 noted that the assessee had opted for settlement under the Vivad Se Vishwas Scheme, 2024, and had been issued Form No. 2 by the competent authority. Consequently, the assessee requested to withdraw both appeals. The Revenue did not object to this request. Therefore, the Tribunal dismissed both appeals as withdrawn.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 No specific finding was made on the merits of the disallowance of Section 80GGC deduction, as the appeals were withdrawn.

What were the facts?

The assessee, Saurabh Pravinbhai Patel and Brijesh Pravinbhai Patel AOP, filed appeals for Assessment Years (AYs) 2016-17 and 2017-18. The appeals challenged the orders of the Commissioner of Income Tax (Appeals) - National Faceless Appeal Centre (NFAC), Delhi, dated 12/10/2023. These orders confirmed the disallowance of deductions claimed under Section 80GGC of the Income Tax Act, 1961. 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 they had opted for settlement under the Vivad Se Vishwas Scheme, 2024, and requested to withdraw the 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 is justified for AY 2016-17 and AY 2017-18. The assessee contended that they had opted for settlement under the Vivad Se Vishwas Scheme, 2024, and Form No. 2 had been issued by the competent authority. Based on this, the assessee requested to withdraw both appeals. The revenue, through the Departmental Representative, 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 parties.

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 Rashtriya Komi Ekta Party, which was also disallowed.

3.

The CIT(A) upheld the disallowances in both years.

4.

Aggrieved by the orders of CIT(A), the assessee preferred the present appeals before us, challenging the findings of the lower authorities.

5.

During the course of hearing, 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 Form No. 2 has been issued by the competent authority. Accordingly, the assessee requested to withdraw both appeals.

6.

The Departmental Representative (DR) raised no objections. Considering the submissions, the appeals are dismissed as withdrawn. However, the assessee is at liberty to seek restoration in case of any difficulty in implementing the scheme.

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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