JHARKHAND MUKTI MORCHA , RANCHI V. DCIT CIR-1 , RANCHI

ITA 180/RAN/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8294 (ITAT-RANCHI)
• Duration Of Justice: 2 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 26-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: J JAIPURIAR
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL: RANCHI BENCH, RANCHI BEFORE SHRI S.S.GODARA, JM AND DR. A. L. SAINI, AM I.T.A NO.180/RAN/2017 ASSESSMENT YEAR: 2010-11 JHARKHAND MUKTI MORCHA, RANCHI BARIYATU ROAD, RANCHI, JHARKHAND- 834009 VS. DCIT, CIRCLE-1, RANCHI PAN/GIR NO. : AAAAJ0290N ( APPELL ANT ) .. (RESPONDENT) APPELLANT BY SHRI DEVESH PODDAR, ADVOCATE & SHRI J. JAIPURIAR, FCA RESPONDENT BY SHRI AJAY KUMAR, ADDL. CIT(DR) DATE OF HEARING 05.03.2020 DATE OF PRONOUNCEMENT 05.03.2020 O R D E R PER BENCH(ORAL): THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2010-11 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS), JHARKHAND DATED 04.04.2017 PASSED IN CASE NO.41/RAN/S&S/OTH/13-14 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE ON MERITS SEEKS TO REVERSE BOTH THE LOWER AUTHORITIES ACTION ADDING AN AMOUNT OF RS.51,87,500/- OUT OF TOTAL DONATION OF RS.66,87,500/- RECEIVED DURING THE RELEVANT PREVIOUS YEAR. THE CIT(A) HAS CONFIRMED THE ASSESSING OFFICERS ACTION MAKING THE IMPUGNED ADDITION BY HOLDING THAT THE ASSESSEE HAS FAILED TO PROVIDE THE NAMES OF THE DONORS MAKING CONTRIBUTIONS OF LESS THAN 20,000/- EACH AS PER SECTION 13A 1 ST PROVISO(B) OF THE ACT. I.T.A NO.180/RAN/2017 JHARKHAND MUKTI MORCHA, RANCHI 2 3. A PERUSAL OF THE SAID STATUTORY PROVISION MAKES IT CLEAR THAT A POLITICAL PARTY HAS TO MAINTAIN THE RECORD OF SUCH DONORS ONLY IN THOSE CASES WHEREIN THE RESPECTIVE SUM(S) EXCEEDS RS.20,000/- EACH. WE MAKE IT CLEAR THAT THE ASSESSEES CONTRIBUTION IN CASES INVOLVING MORE THAN RS.20,000/- AMOUNTING TO RS.50,00,000/- STOOD DULY EXPLAINED AND ACCEPTED. WE ARE OF THE OPINION IN THIS FACTUAL BACKDROP THAT FOREGOING PROVISO(SUPRA) MAKES IT ABUNDANTLY CLEAR THAT A POLITICAL PARTY HAS TO KEEP OR MAINTAIN RECORD OF CONTRIBUTORS IN EXCESS OF RS.20,000/- ONLY QUA THE DONORS CONCERNED, WE GO BY STRICTER INTERPRETATION AS PROPOUNDED IN COMMISSIONER OF CUSTOMS VS. DILIP KR. & ORS (2018) 9 SCC 1 AND HOLD THAT BOTH THE LEARNED LOWER AUTHORITIES HAVE ERRED IN MAKING THE IMPUGNED ADDITION OF RS.51,87,500/-. WE ALSO WISH TO MAKE IT CLEAR THAT ALTHOUGH THE LEGISLATURE HAS INSERTED CLAUSE (D) TO THE FOREGOING PROVISO THAT NO DONATION EXCEEDING TWO THOUSAND RUPEES IS TO BE RECEIVED BY SUCH A POLITICAL PARTY EXCEPT BY AN ACCOUNT PAYEE CHEQUE AND OTHER SPECIFIED MODE(S) VIDE FINANCE ACT 2017, THE SAME CARRIED PROSPECTIVE EFFECT FROM 01/04/2018 ONLY WHEREAS WE ARE IN ASSESSMENT YEAR 2010-11. THE ASSESSING OFFICER IS DIRECTED TO DELETE THE IMPUGNED ADDITION. 4. THIS ASSESSEES APPEAL IS ALLOWED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 05.03.2020. SD/- SD/- (A. L. SAINI) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 05.03.2020. RS COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) - 5. THE DR, ITAT, RANCHI 6. GUARD FILE BY ORDER SR. P.S., ITAT, RANCHI (ON TOUR)