Genuineness of political donation receipts not proved; section 80GGC deduction disallowed for accommodation entry transactions.

Deduction claimed under section 80GGC for donations to political parties was disallowed because the receipts were treated as part of an accommodation entry arrangement. The record showed that funds were routed through bank accounts and returned, and no fresh material was produced to rebut the findings of the lower authorities. In the absence of evidence proving the genuineness of the donation, the deduction was not able, and the disallowance was upheld.

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Issues: Whether the disallowance of deduction claimed under section 80GGC of the Income-tax Act, 1961 in respect of donations made to political parties was justified.

Analysis: The claim was examined in the light of the earlier co-ordinate bench decision on identical facts. It was found that the donation receipts were part of an accommodation entry arrangement, with the funds routed through bank accounts and returned, and that no fresh material was produced to dislodge the findings recorded by the lower authorities. In the absence of evidence establishing genuineness of the donation, the claim for deduction could not be accepted.

Conclusion: The disallowance of deduction under section 80GGC was upheld and the assessee's challenge failed.

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