Appeal details
Counselvise Citation
[2020] 111 COUNSELVISE.COM (IT) 8588 (ITAT-AHMEDABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 5 month(s) 24 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
20-01-2020
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
B
Next Hearing Date
14-01-2020
Assessment Year
2015-2016
Appeal Filed On
26-07-2018
Judgement Text
, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NO. 1699/AHD/2018 ( ASSESSMENT YEAR : 2015-16) SHRI HARSHADKUMAR RATILAL PATEL 01, SHANTI PALACE, 100 TP ROAD, NEAR HEBATPUR CHAR RASTA, OPP. PALM BEACH BUNGLOW, THALTEJ, AHMEDABAD / VS. THE ASSISTANT COMMISSIONER OF INCOME- TAX CIRCLE 5(1), 6 TH FLOOR, NATURE VIEW BUILDING, NEAR H. K. HOUSE, OFF. ASHRAM ROAD, AHMEDABAD ./ ./ PAN/GIR NO. : AKGPP3904L ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI P. F. JAIN, A.R. / RESPONDENT BY : SHRI SUMIT VERMA, SR. D.R. DATE OF HEARING 14/01/2020 !'# / DATE OF PRONOUNCEMENT 20/01/2020 / 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 I NCOME TAX (APPEALS)-5, AHMEDABAD (CIT(A) IN SHORT), DATED 04 .06.2018 ARISING IN THE ASSESSMENT ORDER DATED 29.12.2017 PA SSED BY THE ITA NO. 1699/AHD/18 [SHRI HARSHADKUMAR R. PATEL VS. ACIT] A.Y. 2015-16 - 2 - ASSESSING OFFICER (AO) UNDER S. 143(3) OF THE INCOM E TAX ACT, 1961 (THE ACT) CONCERNING AY 2015-16. 2. AS PER GROUNDS OF APPEAL, THE ASSESSEE HAS CHALL ENGED THE DISALLOWANCE OF RS.15 LAKHS BEING DEDUCTION CLAIMED BY THE ASSESSEE UNDER S.80GGC OF THE ACT ON DONATIONS PURP ORTEDLY GIVEN TO THE POLITICAL PARTIES. 3. ON PERUSAL OF THE ASSESSMENT ORDER, WE NOTICE THAT THE ASSESSEE, A SALARIED EMPLOYEE, CLAIMED DEDUCTION FO R DONATION AMOUNTING TO RS.15 LAKHS UNDER S.80GGC OF THE ACT M ADE THROUGH BANKING CHANNEL TO THE POLITICAL PARTIES. THE ASSE SSEE HAS CLAIMED TO HAVE DONATED RS.5 LAKHS TO RASHTRIYA KRANTIKARI SAMAJWADI PARTY AND RS.10 LAKHS TO AKHIL BHARAT HINDU MAHASABHA, GU JARAT STATE. IN THIS REGARD, IT IS CASE OF THE ASSESSEE THAT IN THE COURSE OF THE SCRUTINY PROCEEDINGS, THE ASSESSEE FURNISHED THE PR OOF OF THESE PAYMENTS BY WAY OF RECEIPTS ISSUED BY THE POLITICAL PARTIES AS WELL AS REGISTRATION OF THESE POLITICAL PARTIES ISSUED B Y 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 T HESE 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 RASHTR IYA KRANTIKARI SAMAJWADI PARTY REMAINED UNCOMPLIED WITH. THE BANK STATEMENT FURNISHED BY THE PARTY DID NOT SHOW THE CHEQUE NO. OF THE ASSESSEE. SIMILARLY, NOTICE ISSUED UNDER S.131 OF THE ACT TO AKHIL BHARAT HINDU MAHASABHA, GUJARAT STATE, ALSO REMAINED UNRES PONDED. 4. IN THE FIRST APPEAL, THE CIT(A) DENIED THE RELIE F TO THE ASSESSEE ON THE GROUND THAT DESPITE SEVERAL OPPORTUNITIES GI VEN TO THE ITA NO. 1699/AHD/18 [SHRI HARSHADKUMAR R. PATEL VS. ACIT] A.Y. 2015-16 - 3 - ASSESSEE, THE ONUS PLACED ON THE ASSESSEE TO SUBSTA NTIATE THE BONAFIDES COULD NOT BE DISCHARGED. 5. PLACED IN THE SIMILAR CIRCUMSTANCES, THE CO-ORDI NATE 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 NARRA TED ABOVE, WE FIND THAT CERTAIN OBSERVATION FROM THE REVENUE A RE OVERRIDING IN NATURE WHICH DISTINGUISHES THE CASE OF THE ASSES SEE WITH THAT OF M/S. SUDEEP INFRASTRUCTURE ITA NO. 512/AHD/2017 ORD ER DATED 22.10.2019 REFERRED TO AND RELIED UPON ON BEHALF OF ASSESSEE AT THE TIME OF HEARING BEFORE TRIBUNAL. IN THE INSTANT CA SE, THE BANK STATEMENT FILED BY ASSESSEE SHOWING PAYMENT MADE DO ES 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 FACTUM OF THE RECEIPT OF DONATION. 6. PERTINENT TO SAY, A POLITICAL PARTY IS AN ORGANI ZED GROUP OF PEOPLE MEANT TO PLAY CRUCIAL ROLE IN FACILITATING G OVERNANCE, POLICY MAKING ETC. AND CONSEQUENTLY IN DEFINING THE WAY OF LIFE OF COMMON CITIZEN ON CONTINUED BASIS. IT IS HARD TO I MAGINE THAT SUCH PARTIES REGISTERED WITH ELECTION COMMISSION AND SO ESSENTIAL TO OUR DEMOCRATIC FORM OF GOVERNMENT WOULD NOT ABIDE B Y DECLARED LAW OF COUNTRY AND WOULD SEEK AN ESCAPE FROM PROVID ING VITAL INFORMATION ON CONTRIBUTIONS RECEIVED UNDER ENQUIRY . SUCH LEEWAY TO A REGISTERED POLITICAL PARTY WOULD TO BE FATAL A ND WOULD SET A BAD EXAMPLE TO THE SOCIETY AT LARGE. 7. THEREFORE, HAVING REGARD TO THE TOTALITY OF THE CASE, WE CONSIDER IT JUST AND EQUITABLE TO RESTORE THE ISSUE BACK TO THE FILE OF THE AO FOR DE NOVO EXAMINATION IN ACCORDANCE WIT H LAW AFTER MAKING SUITABLE ENQUIRY WITH POLITICAL PARTIES AS M AY BE CONSIDERED EXPEDIENT AND AFTER PROVIDING PROPER OPP ORTUNITY TO THE ASSESSEE. THE ASSESSEE SHALL BE AT LIBERTY TO ADDU CE SUCH EVIDENCE AS HE MAY THINK FIT TO SUBSTANTIATE THE BONAFIDES O F DONATIONS MADE AND PROVE ELIGIBILITY OF DEDUCTION UNDER S.80GGC OF THE ACT. ITA NO. 1699/AHD/18 [SHRI HARSHADKUMAR R. PATEL VS. ACIT] A.Y. 2015-16 - 4 - 6. IN PARITY, THE ISSUE IS REMANDED BACK TO THE FIL E OF THE AO ON IDENTICAL TERMS AND DIRECTIONS. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMAR KE DIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 20/01/2020 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 20/01/2020
