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Facts
The assessee claimed a deduction of Rs. 3,00,000/- under section 80GGC of the Income-tax Act for a donation made to RSP. The Assessing Officer disallowed this claim, considering the donation as bogus as the RSP was allegedly formed solely for bogus donation scams.
Held
The Tribunal upheld the disallowance of the section 80GGC deduction. It noted that the investigation revealed no political activities by the RSP and that it was used to provide accommodation entries, making the donation bogus.
Key Issues
Whether the donation made to RSP was genuine and eligible for deduction under Section 80GGC, or if it was a bogus transaction.
Sections Cited
147, 144, 80GGC, 148
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Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI
Before: SHRI SATBEER SINGH GODARA
Date of hearing 25.11.2025 Date of pronouncement 25.11.2025 ORDER This assessee’s appeal for assessment year 2019-20, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1076363908(1), dated 22.05.2025 involving proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.
Delay of 74 days in filing of the assessee’s instant appeal is condoned in larger interest of justice and in light of Collector, Land & Acquisition vs. Mst. Katiji & Others (1987) 167 ITR 471 (SC).
It transpires at the outset during the course of hearing with the able assistance coming from both the parties that the learned lower authorities have refused section 80GGC deduction claim amounting to Rs.3 lakhs; in assessment order dated 13th February, 2025 and upheld in the lower appellate discussion as under: “5.1 During the course of appellate proceedings, the appellant had raised four grounds of appeal, which are centred around making disallowance of donation paid to RUPP of Rs. 3,00,000/- u/s 80GGC of the Act and addition of savings interest income of Rs. 1,651/-. Briefly, the appellant had filed ITR for the impugned AY 2019-20 declaring a total income of Rs. 26,51,070/- and claimed deduction of Rs. 3,00,000/- u/s 80GGC of the Act. The appellant’s case was reopened u/s 148 of the Act. Accordingly, statutory notices were issued during the course of assessment proceedings. The investigation wing of the department had unearthed the facts from the persons involved with the RSP that the party was not carrying out any political activities and was formed for the sole purpose of carrying out bogus donations scam. Hence, the AO had concluded the assessment proceedings by disallowing the bogus deduction claimed u/s 80GGC of the Act. 5.2 During the course of appellate proceedings, the appellant had furnished written submissions along with donation receipt, bank statement and other case laws relied upon. I have carefully considered the written submissions, assessment order and facts of the case. The appellant had paid an amount of Rs. 3,00,000/- to RSP and claimed deduction u/s 80GGC of the Act on donation paid to RSP. The enquiry conducted by the investigation wing of the department on the persons involved with RSP has revealed that there were no political activities conducted and they have only used bank account of the RSP to provide accommodation entries, where donation received by banking channels were layered through various bank accounts and ultimately cash was returned back. The Hon’ble ITAT, Ahmedabad, Bench ‘B’ vide IT APPEAL NO. 1659 (AHD.) OF 2019 [2022] 142 taxmann.com 574 (Ahmedabad - Trib.) in the case of Pavan Anil Bakeri v. Deputy Commissioner of Income-tax had held that the donation given to RSP is bogus and hence the deduction claimed u/s 80GGC is disallowed. Therefore, I am of the view that the findings given by AO do not require 2 | P a g e any interference and the addition is sustained. Therefore, the grounds of appeal
raised on this issue is dismissed. Further, the AO had rightly added the saving bank interest amount of Rs. 1,651/-, as the appellant has not claimed the same as deduction in ITR filed for the impugned AY 2019-20. 6.0 In the result, the appeal is dismissed.”
4. Suffice to say, it has come on record that the tribunal’s another learned coordinate bench has already applied its mind whilst deciding the instant issue in the department’s favour that such a deduction claim of donation made to M/s. RSP (supra) as bogus in nature. That being the case, the tribunal finds no merit in the assessee’s case as well since standing on identical footing which is hereby rejected in very terms.