NAVEEN KUMAR,BARWALA V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE, HISAR, HISAR

ITA 1602/DEL/2025

AI Insights

The case revolves around an appeal by Naveen Kumar against the order of the Deputy Commissioner of Income Tax (DCIT), Hisar, which disallowed a deduction of Rs. 17,75,000 claimed under Section 80GGC for donations made to the Jan Rajya Party. The DCIT had initially disallowed the claim citing the donations were not genuine, supported by a statement from the party's treasurer and allegations of fraud involving fake bank accounts. However, the Tribunal, after reviewing the evidence including bank statements and receipts from the Jan Rajya Party, concluded that the donations were indeed made through legitimate banking channels and were properly documented, thus allowing the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717564 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: 2017-2018
• Appeal Filed On: 17-03-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

"1 ITA No. 1602/Del/2025 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G”: NEW DELHI BEFORE Ms. MADHUMITA ROY, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 1602/DEL/2025 Assessment Year: 2017-18 Naveen Kumar, VPO Khedar, Tehsil Barwala, Distt. Hisar (Haryana)-125121 PAN: AYAPK 5822 C Vs DCIT Circle, Hisar. APPELLANT RESPONDENT Assessee represented by Shri Lalit Mohan CA; & Shri Ankit Kumar, Adv. Department represented by Shri Mahesh Kumar, CIT(DR) Date of hearing 12.08.2025 Date of pronouncement 14.08.2025 O R D E R PER Ms. MADHUMITA ROY, JM: The instant appeal, preferred by the assessee, is directed against the order dated 07.03.2025 [DIN & ORDER No. ITBA/APL/S/250/2024-25/1074177958(1) passed by the Commissioner of Income Tax (Appeals)-5, Mumbai, arising out of the order dated 26.12.2019 passed by the DCIT Circle, Hissar under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for the Assessment Year 2017-18. Printed from counselvise.com 2 ITA No. 1602/Del/2025 2. This matter relates to disallowance of deduction under Section 80GGC amounting to Rs. 17,75,000/- and disallowance of exemption u/s 10(13A) of Rs. 1,51,500/- on account of HRA. 3. At the time of hearing of the matter the Ld. counsel of the assessee did not press the issue raised in ground No. 3 relating to HRA disallowance of Rs. 1,51,500/-. Hence, ground No. 3 is dismissed as not pressed. 4. Fact of the case in brief is this that during the assessment Year 2017-18 the assessee received salary of Rs. 1,03,94,200/- including exempt allowances and perquisites amounting to Rs. 1,70,700/-. The assessee alleged to have made donations of Rs. 17,75,000/-to a political party namely Jan Rajya Party and claimed deduction of Rs. 17,75,000/- under Section 80GGC of the Act for such donations. The AO disallowed the claim by holding that the donation alleged to have been given to Jan Rajya Party was not genuine. Furthermore, it was informed by the Treasurer of Jan Rajya Party Shri Surender Shukla that no such donation had been received by the political party from the assessee herein. Furthermore, a big fraud was going on through fake bank accounts in which donation had been shown. The AO ultimately rejecting the claim of the assessee and made addition of Rs. 17,75,000/- under Section 80GGC of the Act in the hands of the assessee. The same was further confirmed by the Ld. CIT(Appeals). Hence, the instant appeal before us. Printed from counselvise.com 3 ITA No. 1602/Del/2025 5. We have heard rival submissions of the respective parties and have gone through the materials available on record. It is the case of the assessee that the donation has been made to the said political party viz. Jan Rajya Party through banking channel particularly assessee’s own saving bank accounts bearing No. 017701575663 lying into ICICI Bank, Wealth Management Branch, evidences whereof have been enclosed in the paper book. In fact copy of audit report of Jan Raajya Party [available at pages 37-47 of the paper book, relevant page no. 46 of the paper book], shows amounts received from the assessee on 15.02.2017; 18.02.2017; 24.02.2017; 1.03.2017; 6.03.2017; 10.03.2017 and 18.03.2017 i.e. total receipt of Rs. 17,75,000/-. Apart from that the receipt given by Jan Raajya Party with regard to the payment made by the assessee as donation of Rs. 17,75,000/- is also appearing at pages 18,19, & 20 of the paper book. So far fraud on account of donation given by several donors to the said party is concerned, the clarification has also been filed before us wherein it appears that one allegation leveled against the said party or the President of the said party namely Mr. Ravishankar Bharat who was controlling the bank a/c of the said party was false; such fact is evident from the final report which was duly placed before the Ld. AO. The Audit Report of Jan Raajya Party for the relevant financial year ending 31.03.2017 has also been annexed to the Paper Book filed by the assessee before us. The same is appearing at pages 52 to 55 of the paper book filed before us. The Printed from counselvise.com 4 ITA No. 1602/Del/2025 contents of all the above referred documents was not controverted by the Ld. DR in support of the disallowance made by the Revenue. 6. Under these facts and circumstances of the case, since the assessee has been able to show that the donation of Rs. 17,75,000/- made to Jan Raajya Party through banking channel, particularly from assessee’s own Savings Bank A/c. as mentioned in the foregoing paragraph, receipt whereof issued by the said party has also not been controverted and further that taking into consideration the status in respect to the FIR lodged against the said party as indicated hereinabove we do not find any reason to deny the claim of the assessee of exemption u/s 80GGC of the Act. Hence the addition is found to be not sustainable in the eyes of law and thus the same is hereby deleted. Ordered accordingly. 7. Assessee’s appeal is partly allowed in above terms. Order pronounced in open court on 14.08.2025. Sd/- Sd/- (NAVEEN CHANDRA) (MS. MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: _14.08.2025. *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "