ITAT ALLOWS DEDUCTION FOR DONATION TO POLITICAL PARTY, DISMISSES ACIT APPEAL FOR LACK OF EVIDENCE
ACIT vs. Anuj Prakash Gupta (ITA No.11/RPR/2026)
Facts:
1. The dispute is regarding a deduction of Rs. 2 lakh claimed by the assessee under Section 80GGC of the Income Tax Act for a donation made to a political party, named the Rashtriya Samajwadi Party (Secular).
2. Following a search carried out in the case of Registered Unrecognised Political Party (RUPP)’s group, Ahmedabad, under Section 132 of the Income Tax Act, the political party, Rashtriya Samajwadi Party (Secular), was found to be involved in bogus donation entries, considering which, the Assessing Officer (AO) reopened the case under Section 147/148 of the Act, concluding which the AO disallowed a deduction amounting to Rs. 2 lakh under Section 80GGC.
ITAT Raipur held as below:
1. The department failed to show any direct connection between the assessee and the alleged bogus activities and also failed to furnish any evidence proving that money was returned to him. The payment was made through banking channels.
2. The disallowance was based only on general assumptions and not on solid evidence against the assessee.
3. ACIT’s appeal for AY 2019-20 is dismissed, allowing the assessee’s Section 80GGC deduction.
The copy of the order is as under:
