Shri Vinodchandra Narendrarai Bhatt, Ahmedabad V. ACIT, Circle-5(1), Ahmedabad

ITA 1819/AHD/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8700 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 13-01-2020
• Assessment Year: 2015-2016
• Appeal Filed On: 23-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N. K. GOEL
• Keywords: Double taxation relief; Revised return; Set aside
• Section: 90; 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. 1819/AHD/2018 ( ASSESSMENT YEAR : 2015-16) SHRI VINODCHANDRA NARENDRARAI BHATT 10, SABARMATI SOCIETY, DHARMANAGAR, SABARMATI, AHMEDABAD 380 005 / VS. ASSTT. COMMISSIONER OF INCOME TAX CIRCLE 5(1), NARAYAN CHAMBER, ASHRAM ROAD, AHMEDABAD 380009 ./ ./ PAN/GIR NO. : ADIPB2852L ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI SANJAY R SHAH, A.R. / RESPONDENT BY : SHRI N. K. GOEL, SR. D.R. DATE OF HEARING 13/01/2020 !'# / DATE OF PRONOUNCEMENT 17/01/2020 / 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 06 .07.2018 ARISING IN THE ASSESSMENT ORDER DATED 26.12.2017 PASSED BY THE ASSESSING OFFICER (AO) UNDER S. 143(3) OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING AY 2015-16. ITA NO. 1819/AHD/18 [SHRI VINODCHANDRA N. BHATT VS. ACIT ] A.Y. 2015-16 - 2 - 2. THE GROUNDS OF APPEAL FILED BY THE ASSESSEE READ AS UNDER: 1.0 THE LEARNED CIT(A) ERRED IN DISALLOWING A SUM OF RS.14,00,000/- U/S 80 GGC IN RESPECT OF DONATION TO TWO POLITICAL PARTIES. THE LEARNED CIT(A) GROSSLY ERRED IN CONFIRMING SUCH ADDITION. IT IS SUBMITTED THAT SINC E THE APPELLANT HAS LED ALL EVIDENCES TO PROVE THE GENUIN ENESS OF THE DONATION AND THE SAME FULFILS ALL THE REQUIREMENTS OF SECTION 80GGC, THE SAME SHOULD BE ALLOWED TO HIM. IT IS SUB MITTED THAT IT BE SO HELD NOW. 2.0 THE LEARNED A.O. ERRED IN REJECTING THE EXPLAN ATION OF THE APPELLANT IN RESPECT OF SUCH DONATION AND ERRED IN DISALLOWING THE SAME U/S 80GGC IN BREACH OF PRINCIPLE OF NATURA L JUSTICE, WHEREAS THE LEARNED CIT(A) GROSSLY ERRED IN CONFIRM ING SUCH ADDITION ON AN ABSOLUTE DIFFERENT GROUND IN SPITE O F THE FACT THAT THE EVIDENCES TO SUPPORT GENUINENESS AND SOURC E OF SUCH DONATIONS WERE AVAILABLE WITH BOTH THE LOWER AUTHOR ITIES TO PROVE ITS AUTHENTICITY . IT IS SUBMITTED THAT IT BE SO HELD NOW AND ADDITION MADE BY LEARNED A.O. AND CONFIRMED BY THE LEARNED C1T(A) BE DIRECTED TO BE DELETED. 3.0 THE LEARNED CIT(A) ERRED IN NOT ADJUDICATING TH E GROUND BEFORE HIM IN RESPECT OF NON-CONSIDERATION OF REVIS ED RETURN BY THE LEARNED A.O. AND NOT GRANTING THE CREDIT FOR DO UBLE TAXATION RELIEF U/S 90 OF THE ACT OF INCOME TAX OF RS. 1,25,935/- ON FOREIGN INCOME OF AMOUNTING TO RS.4,0 7,559/-. IT IS SUBMITTED THAT IT BE SO HELD NOW. 3. FIRST TWO GROUNDS OF THE ASSESSEE CONCERN DISA LLOWANCE UNDER S.80GGC OF THE ACT AMOUNTING TO RS.14 LAKHS. ON CO NSIDERATION OF RIVAL SUBMISSIONS AND ON PERUSAL OF THE ORDERS OF T HE AUTHORITIES BELOW, WE FIND THAT AO HAS DISALLOWED DONATIONS MAD E TO TWO POLITICAL PARTIES; (I) RASHTRIYA KOMI EKTA PARTY & (II) LOK J ANSHAKTI PARTY. THE ITA NO. 1819/AHD/18 [SHRI VINODCHANDRA N. BHATT VS. ACIT ] A.Y. 2015-16 - 3 - ASSESSEE, A SALARIED EMPLOYEE, CLAIMED DEDUCTION FO R SUCH DONATIONS MADE THROUGH BANKING CHANNEL TO THESE POLITICAL PAR TIES. IN THIS REGARD, IT IS THE CASE OF THE ASSESSEE THAT IN THE COURSE OF THE SCRUTINY PROCEEDINGS, THE ASSESSEE FURNISHED THE PROOF OF TH ESE PAYMENTS BY WAY OF RECEIPTS AS WELL AS REGISTRATION OF THESE PO LITICAL PARTIES ISSUED BY ELECTION COMMISSION OF INDIA. A SHOW CAUSE NOTI CE WAS ISSUED BY THE AO TO THE ASSESSEE TO PRODUCE BANK PASSBOOK / S TATEMENT TO SUBSTANTIATE THE CLAIM WHICH WAS DULY COMPLIED WITH HIGHLIGHTING THE DONATION DEBITED IN THE BANK STATEMENT TOGETHER WIT H NAME, CHEQUE NUMBER ETC. IT IS CLAIMED ON BEHALF OF THE ASSESSE E THAT DESPITE THESE FACTS, THE AO DISALLOWED THE CLAIM MADE UNDER S.80G GC OF THE ACT ON THE PRELIMINARY GROUND THAT NOTICE ISSUED UNDER S.1 31 OF THE ACT TO RASHTRIYA KOMI EKTA PARTY SEEKING CONFIRMATION OF R ECEIPT OF DONATION REMAINED UNCOMPLIED WITH. LIKEWISE, SUMMONS ISSUED UNDER S.131 OF THE ACT TO LOK JANSHAKTI PARTY REMAINED UNRESPONDED . IT WAS FURTHER OBSERVED BY THE AO THAT POLITICAL PARTY WAS NOT FOU ND THE ADDRESS PROVIDED AS PER THE TAX INSPECTOR REPORT. 4. IN THE FIRST APPEAL, THE CIT(A) DENIED THE RELIE F TO THE ASSESSEE ON TWO COUNTS; FIRSTLY, THE SOURCE AND SUPPORTING E VIDENCE EXPLAINING THE PAYMENT WAS NOT PROVED AND SECONDLY, ON INQUIRI ES FROM THE POLITICAL PARTIES, THE VERIFICATION OF RECEIPT OF P AYMENT BY THEM COULD NOT BE MADE. 5. ON PERUSAL OF THE FACTS AND CIRCUMSTANCES NARRAT ED 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 ITA NO. 1819/AHD/18 [SHRI VINODCHANDRA N. BHATT VS. ACIT ] A.Y. 2015-16 - 4 - 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 DE CLARED LAW OF COUNTRY AND WOULD SEEK AN ESCAPE FROM PROVIDING VIT AL INFORMATION ON CONTRIBUTIONS RECEIVED UNDER ENQUIRY. SUCH LEEWAY TO A REGISTERED POLITICAL PARTY WOULD TO BE FATAL AND WOULD SET A B AD 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 WITH LAW AFTER MAKING SU ITABLE 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. 8. GROUND NOS. 1 & 2 ARE ACCORDINGLY ALLOWED FOR ST ATISTICAL PURPOSES. 9. GROUND NO.3 CONCERNS GRIEVANCE TOWARDS NOT GRANT ING CREDIT FOR DOUBLE TAXATION RELIEF. AS POINTED OUT ON BEHALF O F THE ASSESSEE, THE REVISED RETURN FILED BY THE ASSESSEE TO CLAIM DOUBL E TAXATION RELIEF UNDER S.90 OF THE ACT AMOUNTING TO RS.1,25,935/- IN RESPECT OF FOREIGN ITA NO. 1819/AHD/18 [SHRI VINODCHANDRA N. BHATT VS. ACIT ] A.Y. 2015-16 - 5 - INCOME BY WAY OF SALARIES AND OFFERED FOR TAXATION IN INDIA APPEARS TO HAVE NOT BEEN TAKEN NOTE OF BY BOTH THE LOWER AUTHO RITIES. UNDER THESE CIRCUMSTANCES, WE SET ASIDE THE ACTION OF THE LOWER AUTHORITIES ON THIS POINT AS WELL AND REMIT THE MATTER BACK TO THE FILE OF THE AO FOR DETERMINATION OF THE ISSUE AFRESH IN ACCORDANCE WIT H LAW AFTER PROVIDING PROPER OPPORTUNITY TO THE ASSESSEE FOR SU BSTANTIATION OF HIS CLAIM. 10. IN THE RESULT, GROUND NO.3 OF THE ASSESSEES AP PEAL IS ALLOWED FOR STATISTICAL PURPOSES. 11. 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 17/01/2020 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 17/01/2020