Political contribution deductions require assessee-specific proof before cash-back allegations can justify disallowance or unexplained-money additions...
Non-resident Indian donor gifted funds to assessee through cheques from NRE account, proving identity, creditworthiness, and genuineness. Assessing Officer made addition to assessee's income by treating gift as income, which was incorrect as gift from relative is not taxable. Interest income from other sources was also doubly added by AO while processing return, leading to double taxation. ITAT directed AO to delete both additions as gift was genuine and interest income was already included in return, allowing assessee's appeals on both grounds.
Non-resident Indian donor gifted funds to assessee through cheques from NRE account, proving identity, creditworthiness, and genuineness. Assessing Officer made addition to assessee's income by treating gift as income, which was incorrect as gift from relative is not taxable. Interest income from other sources was also doubly added by AO while processing return, leading to double taxation. ITAT directed AO to delete both additions as gift was genuine and interest income was already included in return, allowing assessee's appeals on both grounds.
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