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Facts
The assessee filed an income tax return for AY 2019-20, claiming a deduction of Rs. 10 lakhs under sections 80GGC/80G for a donation. The Assessing Officer disallowed this deduction, leading to an addition. The assessee's appeal before the CIT(A) was dismissed ex-parte, with the CIT(A) stating that the assessee did not respond to hearing notices, while the assessee contended that these notices never came to their knowledge and that the donation was legitimate.
Held
The Tribunal noted the ex-parte dismissal by the CIT(A) and found the assessee's reasons for delayed appeal filing to be genuine, thus condoning the delay. It remanded the matter back to the file of the CIT(A) for proper re-adjudication after considering the assessee's details and submissions, directing the assessee to cooperate and avoid unnecessary adjournments.
Key Issues
Whether the assessee was denied an effective opportunity of being heard by the CIT(A) leading to an ex-parte order; whether the disallowance of deduction u/s 80GGC/80G for a political donation was justified given the claim of a legitimate transaction to an approved institution.
Sections Cited
250, 80GGC, 80G, 139
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Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH, AHMEDABAD
Before: Ms. Suchitra Kamble
आदेश/ORDER This is an appeal filed against the order dated 27-06- 2025 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2019-20.
The grounds of appeal
are as under:-
1. That the appellant is deprived of the effective opportunity of making any submission to CIT(A) due to reasons beyond Appellant's Control thereby losing the opportunity to submit arguments in detail on merit of the case to CIT(A) and thereby appeal getting disposed by CIT(A) with the finding of the CIT(A)'s Order wherein CIT(A) has mentioned at Para no. 4.0 on page no. 4 that "During the course of appellate proceedings, the appellant was issued hearing notices. The appellant has not responded to the above hearing notices, Therefore, the appeal is decided based on grounds of appeal, statement of facts and material available on record.”
1. 1. 1. 1. 1. Further, CIT(A) hurriedly issued two consecutive notices u/s 250 between a very short period of only 15 days i.e. on 09.06.2025 (with due date of reply: 16.06.2025) and 19.06.2025 (with due date of reply: 26.06.2025) online in national faceless environment, unfortunately, which never came to knowledge of the Appellant as the and the appellant could not respond to any of above notices u/s 250 issued by CIT(A). Thereafter, Commissioner of Income-tax (Appeals) has hurriedly passed the order on 27.06.2025 (i.e. immediately next day of due date of reply of second notice issued u/s 250) and dismissed the said Appeal.
2. That the Learned CIT- Appeals is not justified in upholding the action of learned AO of not accepting the request of the Appellant of making available the concrete material evidences and documents including statements of the officers/ employees of the political party named Manav Adhikar National Party who have given the statement during the Search proceedings which deprived the Appellant, the opportunity to rebut the material used to make the additions which is in violation of the principles of natural justice including having no opportunity to cross-examine.
3. That the action of ld AO making the addition and CIT Appeals upholding the action of ld AO is not justified in law and on facts for addition of Rs. 10,00,000/- (the amount of donation paid to political party named Manav Adhikar National Party) as a disallowance under section 80GGC/80G of the Income Tax Act and added to the total income of the appellant for the year under consideration as they failed to provide the details/ documents which specify that how and when the appellant had received the money back from the said political party like other assessee and they also failed to recognize that the donation made by the appellant to the said party is completely legitimate as the donation was made to an approved institution under Section 80GGC, and the registration of the said political party was also valid at the time of donation and moreover, the transaction of donation was executed through proper banking channel with possession of a valid donation receipts. The Appellant further submits that the subsequent incident of Search which was conducted at the premise of said political party cannot make the earlier happened legitimate transaction of donation of the appellant as disallowance because at the time of making payment of donation, the said political party's registration was valid.
Your Appellant reserves the right to add, alter, amend and withdraw any of the above grounds of appeal.”
3. The assessee is an individual and filed return of income on 13-15-2023 u/s. 139 of the Act declaring total income of Rs. 35,82,200/- claiming deduction under Chapter VI-A of Rs. 12,35,000/- from gross total income of Rs. 48,47,200/-. The assessee did not respond the notices and therefore the assessee made addition of Rs. 10 lacs thereby disallowing the deduction claimed u/s. 80GGC and 80G of the Act.
4. The assessee filed appeal before the CIT(A). The CIT(A) also dismissed the appeal of the assessee as ex-parte.
There was a delay of 90 days in filing appeal. The reasons given by the assessee appears to be genuine, hence delay is condoned.
The ld. A.R. submitted that the before both the authorities, the assessee could not appear and filed the details, therefore, the matter may be remanded back to the file of the CIT(A).
The ld. D.R. relied upon the assessment order and the order of the CIT(A).
Heard both the parties and perused all the relevant material available on record. It is pertinent to note that the CIT(A) has passed ex-parte order, therefore, it will be appropriate to remand this issue back to the file of the CIT(A) for proper adjudication of the issues after taking 3 Ravi Suryakantbhai Shah, A.Y. 2019-20 cognizance of the assessee’s details and the submissions. The assessee is directed to fully co-operate with the proceedings and will not take any unnecessary adjournments.
In the result, the appeal of the assessee is partly allowed for statistical purposes.