Political contribution deductions require assessee-specific proof before cash-back allegations can justify disallowance or unexplained-money additions...
ITAT held that the addition under s.17(2)(v) for AY 2018-19 is unsustainable: employer's contribution to LIC for an annuity, not credited to or paid on behalf of the assessee and not creating any vested or enforceable right in the relevant year, cannot be taxed as a perquisite. Taxing the contribution in AY 2018-19 would result in impermissible double taxation because the assessee has already offered annuity receipts to tax on accrual/receipt as salary. Reliance on Form 16/26AS does not override substantive statutory provisions. Consequently, the AO's addition is deleted and the appeal is allowed in favour of the assessee.
ITAT held that the addition under s.17(2)(v) for AY 2018-19 is unsustainable: employer's contribution to LIC for an annuity, not credited to or paid on behalf of the assessee and not creating any vested or enforceable right in the relevant year, cannot be taxed as a perquisite. Taxing the contribution in AY 2018-19 would result in impermissible double taxation because the assessee has already offered annuity receipts to tax on accrual/receipt as salary. Reliance on Form 16/26AS does not override substantive statutory provisions. Consequently, the AO's addition is deleted and the appeal is allowed in favour of the assessee.
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