Nitinkumar N. Shah, Ahmedabad V. ACIT, Circle-5(1), Ahmedabad

ITA 1781/AHD/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7836 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 20-01-2020
• Assessment Year: 2015-2016
• Appeal Filed On: 10-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

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. 1781/AHD/2018 ( ASSESSMENT YEAR : 2015-16) NITINKUMAR N. SHAH 904, INDRAPRASH 10, B/H. PRIDE HOTEL, BODAKDEV, AHMEDABAD - 380054 / VS. ACIT CIRCLE - 5(1), 6 TH FLOOR, NATURE VIEW BUILDING, NEAR H. K. HOUSE, ASHRAM ROAD, AHMEDABAD ./ ./ PAN/GIR NO. : AHWPS1688R ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI DEEPAK R. SHAH, A.R. / RESPONDENT BY : SHRI VIDHYUT TRIVEDI, SR. D.R. DATE OF HEARING 20/01/2020 !'# / DATE OF PRONOUNCEMENT 27/01/2020 / 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 08 .06.2018 ARISING IN THE ASSESSMENT ORDER DATED 29.12.2017 PA SSED BY THE ITA NO. 1781/AHD/18 [NITINKUMAR N . SHAH 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.10 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.10 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 KOMI EKTA P ARTY AND RS.5 LAKHS TO RASHTRIYA SAMAJWADI PARTY (SECULAR). IN T HIS REGARD, IT IS CASE OF THE ASSESSEE THAT IN THE COURSE OF THE SCRU TINY PROCEEDINGS, THE ASSESSEE FURNISHED THE PROOF OF PAYMENTS AS EVI DENCED BY RECEIPTS ISSUED BY THE POLITICAL PARTIES AS WELL AS REGISTRATION OF THESE POLITICAL PARTIES ISSUED BY THE ELECTION COMM ISSION OF INDIA. A COPY OF THE BANK STATEMENT WAS ALSO PRODUCED TO S UBSTANTIATE THE CLAIM TOWARDS PAYMENT OF DONATION. IT IS CLAIMED O N BEHALF OF THE ASSESSEE THAT DESPITE THESE FACTS, THE AO DISALLOWE D 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 REMAI NED UNCOMPLIED WITH. THE BANK STATEMENT FURNISHED BY THE PARTY DI D NOT SHOW THE CHEQUE NUMBERS OF THE ASSESSEE. SIMILARLY, NOTICE ISSUED UNDER S.131 OF THE ACT TO RASHTRIYA SAMAJWADI PARTY (SECU LAR) ALSO REMAINED UNRESPONDED. IT WAS ALLEGED BY THE AO THA T TRANSACTION WITH RASHTRIYA KOMI EKTA PARTY ARE SHAM AND MONEY D ONATED TO THE PARTY HAS BEEN CLANDESTINELY RETURNED TO ITS BENEFI CIARIES. THE CLAIM OF DEDUCTION UNDER S.80GGC OF THE ACT BY ASSESSEE W AS REJECTED. ITA NO. 1781/AHD/18 [NITINKUMAR N . SHAH VS. ACIT] A.Y. 2015-16 - 3 - 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 ASSESSEE, THE ONUS PLACED ON THE ASSESSEE TO SUBSTA NTIATE THE BONAFIDES OF DONATION PURPORTEDLY MADE TO THE POLIT ICAL PARITES 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 ARE OVERRIDING IN NATURE WHICH DISTINGUISHES THE CASE OF THE ASSESSEE WITH T HAT OF M/S. SUDEEP INFRASTRUCTURE ITA NO. 512/AHD/2017 ORDER DATED 22. 10.2019 REFERRED TO AND RELIED UPON ON BEHALF OF ASSESSEE AT THE TIM E 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 AR E UNABLE TO PLACE RELIANCE ON SUCH INCOMPLETE BANK STATEMENT AT PRESE NT. SECONDLY, SUMMON ISSUED TO ONE POLITICAL PARTY APPEARS TO HAV E 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 IMAGINE THAT SUCH PARTIES REGISTERED WITH ELECTION COMMISSION AND SO ESSENTIA L TO OUR DEMOCRATIC FORM OF GOVERNMENT WOULD NOT ABIDE BY DECLARED LAW OF COUNTRY AND WOULD SEEK AN ESCAPE FROM PROVIDING VITAL INFORMATI ON ON CONTRIBUTIONS RECEIVED UNDER ENQUIRY. SUCH LEEWAY TO A REGISTERE D POLITICAL PARTY WOULD TO BE FATAL AND WOULD SET A BAD EXAMPLE TO TH E 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 WITH LAW AFTER MA KING 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 THINK FIT TO SUBSTANTIATE THE BONAFIDES OF DONATIONS MADE AND PROVE ELIGIBILITY O F DEDUCTION UNDER S.80GGC OF THE ACT. ITA NO. 1781/AHD/18 [NITINKUMAR N . SHAH VS. ACIT] A.Y. 2015-16 - 4 - 6. IN PARITY, THE ISSUE IS REMANDED BACK TO THE FIL E 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 MAY BE CONSIDERED EXPEDIENT TO ARRIVE AT A COGENT FINDI NG IN THIS REGARD. 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 27/01/2020 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 27/01/202 0