Political donation disallowance deleted where banking proof and receipt supported the assessee's claim despite the party's return omission.

ITAT Rajkot held that disallowance of an assessee's donation to a political party was unsustainable where payment was made through banking channels and the party's receipt supported the claim. Following a co-ordinate Bench decision on the same issue, the Tribunal found the facts similar and accepted the documentary evidence produced by the assessee. The Revenue failed to dislodge the material showing actual payment, and the political party's failure to reflect the donation in its own return was held insufficient to deny the donor relief. The disallowance was deleted in favour of the assessee.

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Issues: Whether the disallowance of the assessee's donation paid to a political party was sustainable.

Analysis: The Tribunal followed the co-ordinate Bench decision on the same legal issue and found the facts to be similar. The assessee had shown payment of the donation through banking channel and the receipt issued by the political party was available, while the Revenue could not dislodge the material evidencing payment. The mere fact that the political party did not account for the donation in its return was held insufficient to deny relief to the donor.

Conclusion: The disallowance was deleted and the issue was decided in favour of the assessee.

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