RASHMIKANT BHAICHANDBHAI SHAH,AHMEDABAD V. THE ITO, WARD-5(3)(2), AHMEDABAD

ITA 1112/AHD/2025

AI Insights

The case involves Rashmikant Bhaichandbhai Shah, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which had rejected his claim for a deduction on a donation of Rs. 215,000 made to The Gujarat Cancer Society. The initial rejection was based on the grounds that the assessee, having business income, was not eligible for deductions under section 80GGA of the Act. The assessee's alternate claim for deduction under section 35(1)(ii), which pertains to donations made to institutions engaged in scientific research, was also rejected by the lower authorities. The Tribunal, emphasizing the need for tax authorities to assist rather than penalize assessees for bona fide mistakes, restored the matter to the AO for a detailed examination of the claim under section 35(1)(ii).

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 826820 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2021-2022
• Appeal Filed On: 19-05-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MAMTA SINGH
• Assessee Lawyers: HARDIK VORA
• Keywords: Business income; Bonafide mistake
• Section: 154

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0013ायपीठ एस.एम.सी’, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD \u001aी संजय गग , \u0013ाियक सद क े सम!। Before Shri Sanjay Garg, Judicial Member आयकर अपील सं /ITA No.1112/Ahd/2025 िनधा \u000fरण वष\u000f /Assessment Year : 2021-22 Rashmikant Bhaichandbhai Shah 31, Jain Society Pritamnagar, Akhada Ellisbridge Ahmedabad – 380 006 बनाम/ v/s. The ITO Ward-5(3)92) Ahmedabad – 380 015 \u0013थायी लेखा सं./PAN: AFGPS 3047 E (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee by : Shri Hardik Vora, Advocate Revenue by : Smt.Mamta Singh, Sr.DR सुनवाई की तारीख/Date of Hearing : 08/01/2026 घोषणा की तारीख /Date of Pronouncement: 09/01/2026 आदेश/O R D E R The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 27/02/2025 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2021-2022. 2. The assessee, in this appeal, has taken the following grounds of appeal: Printed from counselvise.com ITA No.1112/Ahd/2025 Rashmikant Bhaichandbhai Shah vs. ITO Asst. Year : 2021-22 2 “1. That the learned CIT(A) has erred in rejecting the claim of appellant for donation of Rs. 215000 made in application u/s 154 of the act. 2. That the various reason advance by leaned CIT(A) in rejecting the claim of appellant are contrary to the facts of the case and the evidence on records. That the learned CIT(A) has misconstrued the provisions of section 154 of the act. 3. That appellant respectfully submit that he is entitled for deduction of Rs.215000 u/s 35 of the act and the same should be granted to him. 4. The appellant craves leave to add, alter or amend any of the grounds of appeal before final hearing of the appeal.” 3. The brief facts of the case are that the assessee made donation of Rs.2,15,000/- to The Gujarat Cancer Society. The assessee claimed deduction u/s.80GGA of the Act. However, the Assessing Officer (AO) disallowed the said deduction in an intimation passed u/s.143(1) of the Act, stating that since the assessee has a business income, the assessee cannot get the deduction u/s.80GGA of the Act, as per the conditions laid down in the aforesaid provisions. The assessee has made an alternate claim that the assessee alternatively be allowed u/s.35(1)(ii) of the Act, stating that the said The Gujarat Cancer Society is involved in scientific research and has been duly notified in this respect and, therefore, assessee is eligible to claim deduction of the amount paid to the said Society. The alternate claim of the assessee has been rejected by the lower authorities. 4. I have heard the rival submissions of the Ld. Representatives of the parties and gone through the record. It has been held time and again that the income-tax authorities should charge legitimate taxes from the citizens. The CBDT has also issued instructions to the effect that the Income Tax Officers/AOs should assist the assessees in claiming eligible deductions, etc. while assessing their income. The income-tax authorities should not punish Printed from counselvise.com ITA No.1112/Ahd/2025 Rashmikant Bhaichandbhai Shah vs. ITO Asst. Year : 2021-22 3 the assessees for their bonafide mistakes, rather should assist the assessees in claiming the eligible claims of exemption/deductions, etc. In view of this, the matter is restored to the file of AO with a direction to examine the claim of the assessee relating to deduction of the amount paid to the Gujarat Cancer Society u/s.35(1)(ii) of the Act and if the assessee is found eligible, in this respect, then to grant the deduction accordingly. 4. With the above observations, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the Open Court on 09/01/2026. Sd/- ( Sanjay Garg ) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 09 /01/2026 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT. 4. आयकर आयु' ) अपील ( / The CIT(A)- (NFAC), Delhi. 5. िवभागीय #ितिनिध , अिधकरण अपीलीय आयकर , अहमदाबाद /DR,ITAT, Ahmedabad. 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad Printed from counselvise.com "