Income Tax Appellate Tribunal - Ahmedabad
Nitinkumar N. Shah, Ahmedabad vs Acit, Circle-5(1),, Ahmedabad on 27 January, 2020
आयकर अपील य अ धकरण, अहमदाबाद यायपीठ 'B' अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL "B" BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER आयकर अपील सं./I.T.A. No. 1781/Ahd/2018 ( नधा रण वष / Assessment Year : 2015-16) Nitinkumar N. Shah बनाम/ ACIT 904, Indraprash - 10, B/h. Vs. Circle - 5(1), th Pride Hotel, Bodakdev, 6 Floor, Nature View Ahmedabad - 380054 Building, Near H. K. House, Ashram Road, Ahmedabad थायी ले खा सं . /जीआइआर सं . /PAN/GIR No. : AHWPS1688R (अपीलाथ /Appellant) .. ( यथ / Respondent) अपीलाथ ओर से /Appellant by : Shri Deepak R. Shah, A.R. यथ क ओर से / Shri Vidhyut Trivedi, Sr. D.R. Respondent by :
सन ु वाई क तार ख / Date of 20/01/2020 Hearing घोषणा क तार ख /Date of 27/01/2020 Pronouncement आदे श/O R D E R PER PRADIP KUMAR KEDIA - AM:
The captioned appeal has been filed at the instance of the assessee against the order of the Commissioner of Income Tax (Appeals)-5, Ahmedabad (CIT(A)' in short), dated 08.06.2018 arising in the assessment order dated 29.12.2017 passed by the I T A N o . 1 7 8 1 / Ah d / 1 8 [ N i t i n k u m a r N . S h a h v s . AC I T ] A. Y . 2 0 1 5 - 1 6 - 2 -
Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2015-16.
2. As per grounds of appeal, the assessee has challenged the disallowance of Rs.10 Lakhs being deduction claimed by the assessee under s.80GGC of the Act on donations purportedly given to the political parties.
3. On perusal of the assessment order, we notice that the assessee, a salaried employee, claimed deduction for donation amounting to Rs.10 Lakhs under s.80GGC of the Act made through banking channel to the political parties. The assessee has claimed to have donated Rs.5 Lakhs to Rashtriya Komi Ekta Party and Rs.5 Lakhs to Rashtriya Samajwadi Party (Secular). In this regard, it is case of the assessee that in the course of the scrutiny proceedings, the assessee furnished the proof of payments as evidenced by receipts issued by the political parties as well as registration of these political parties issued by the Election Commission of India. A copy of the bank statement was also produced to substantiate the claim towards payment of donation. It is claimed on behalf of the assessee that despite these facts, the AO disallowed the claim made under s.80GGC of the Act on the ground that notice issued under s.131 of the Act to Rashtriya Komi Ekta Party remained uncomplied with. The bank statement furnished by the party did not show the cheque numbers of the assessee. Similarly, notice issued under s.131 of the Act to Rashtriya Samajwadi Party (Secular) also remained unresponded. It was alleged by the AO that transaction with Rashtriya Komi Ekta Party are sham and money donated to the party has been clandestinely returned to its beneficiaries. The claim of deduction under s.80GGC of the Act by assessee was rejected.
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4. In the first appeal, the CIT(A) denied the relief to the assessee on the ground that despite several opportunities given to the assessee, the onus placed on the assessee to substantiate the bonafides of donation purportedly made to the political parites could not be discharged.
5. Placed in the similar circumstances, the co-ordinate bench of the Tribunal Shri Vinodchandra Narendrarai Bhatt vs. ACIT ITA No.1819/Ahd/2018 order dated 17.01.2020 for AY 2015-16 has remanded the issue back to the file of the AO after making following observations:
"5. On perusal of the facts and circumstances narrated above, we find that certain obser vation from the Revenue are overriding in nature which distinguishes t he case of the assess ee with that of M/s. Sudeep Infrastructure ITA No. 512/Ahd/2017 order dated 22.10.2019 ref erred to and relied upon on behalf of assessee at the time of hearing before Tribunal. In the instant case, the bank statement filed by assessee showing payment made does not show complete picture of the name of the bank and other vital details. Therefore, we are unable to place reliance on such incomplete bank statement at present. Secondly, summon issued to one political party appears to have return back without service. The other political party has not proved the fact um of the receipt of donation.
6. Pertinent to say, a political party is an organized group of people meant to play crucial role in facilitating governance, policy making etc. and cons equently in defining the way of life of common citizen on continued basis. It is hard to imagine that s uch parties registered with Election Commission and so essential to our democratic form of Government would not abide by declared law of country and would seek an escape from providing vital i nformation on contributions received under enqui ry. Such leeway to a registered political party would to be fatal and would set a bad example to the society at lar ge.
7. Therefore, having regard to the totality of t he case, we consider it just and equitable to restore the issue back to the file of the AO for de novo examination in accordance with law after making suitable enquiry with political parties as may be considered expedient and after providing proper opportunity to the assessee. The assessee shall be at liberty to adduce such evidence as he may t hink fit to substantiate the bonafides of donations made and prove eligibility of deduction under s.80GGC of the Act."
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6. In parity, the issue is remanded back to the file of the AO for de novo examination on identical terms and directions. It shall be open to AO to make such objective enquiries in the matter as ma y be considered expedient to arrive at a cogent finding in this regard.
7. In the result, the appeal filed by the assessee is allowed for statistical purposes.
This Order pronounced in Open Court on 27/01/2020
Sd/- Sd/-
(MAHAVIR PRASAD) (PRADIP KUMAR KEDIA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Ahmedabad: Dated 27/01/2020
True Copy
S. K. SINHA
आदे श क त!ल"प अ#े"षत / Copy of Order Forwarded to:-
1. राज व / Revenue
2. आवेदक / Assessee
3. संबं*धत आयकर आयु,त / Concerned CIT
4. आयकर आय,
ु त- अपील / CIT (A)
5. 0वभागीय 3त3न*ध, आयकर अपील य अ*धकरण, अहमदाबाद / DR, ITAT, Ahmedabad
6. गाड9 फाइल / Guard file.
By order/आदे श से, उप/सहायक पंजीकार आयकर अपील य अ*धकरण, अहमदाबाद ।