Section 80GGC deduction denied for political donations treated as accommodation entries on identical facts

A deduction claimed under section 80GGC for donations to political parties may be denied where surrounding material indicates an accommodation-entry arrangement rather than a genuine contribution. The text notes that the issue was already covered by a prior coordinate bench decision on identical facts, and the assessee produced no fresh evidence to distinguish that view. In those circumstances, the existing finding that such routed donations were not eligible for deduction was followed, and the disallowance was sustained.

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Issues: Whether the disallowance of deduction claimed under section 80GGC of the Income-tax Act, 1961 in respect of donations to political parties alleged to be accommodation entries was liable to be sustained.

Analysis: The issue was found to be squarely covered by an earlier coordinate bench decision on identical facts concerning donations claimed under section 80GGC. The assessee did not place any fresh material or evidence to distinguish the present case from the earlier decision. In the absence of any material rebuttal, and following the existing view that such donations routed through political parties found to be accommodation entry providers cannot be treated as genuine eligible donations, no interference with the disallowance was warranted.

Conclusion: The disallowance under section 80GGC was upheld and the appeal of the Revenue succeeded.

Final Conclusion: The assessment action sustaining the denial of deduction for the impugned donation claim stood confirmed, resulting in relief to the Revenue.

Ratio Decidendi: A deduction claimed under section 80GGC of the Income-tax Act, 1961 may be disallowed where the surrounding material shows that the donation was part of an accommodation-entry arrangement and the assessee fails to produce fresh evidence to dislodge a prior coordinate bench view on identical facts.

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