TaxTMI 
TaxTMI 
TaxTMI 
2016 (8) TMI 904
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...., notices u/s 143(2) and 142(1) of the Act, were issued. In response to notices, the authorized representative of the assessee appeared from time to time and furnished details called for. The A.O. completed assessment u/s 143(3) of the Act and determined total income of Rs. 1,17,07,175/- by making following additions. (a) Unexplained deduction u/s 80GGC Rs. 54,00,000/-. (b) Un explained sundry creditors Rs. 50,61,086/-. (c) Un explained cash deposits to ICICI Bank Rs. 7,83,162/-. 3. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A). Before, the CIT(A), the assessee has filed elaborate written submission along with necessary evidences for donation paid to political party, confirmation from sundry creditors and also explained the unexplained cash deposits to ICICI Bank account. During the course of appellate proceedings, the CIT(A), forwarded additional evidences filed by the assessee to the A.O. for his comments. The A.O. in the remand report, without commenting on the evidences filed by the assessee, stated that additional evidences filed by the assessee may not be accepted. The CIT(A), after considering the evidences filed by the assessee....
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....lars of recognition and also confirmation letter from the party, therefore disallowed the claim made by the assessee. 5. The Ld. A.R. for the assessee submitted that the CIT(A) failed to appreciate the facts that JOGO party is unrecognized registered political party u/s 29A of the Representation of People Act, 1951. The A.R. further submitted that as per sec. 80GGC, any contribution given by any person to political party, which is registered u/s 29A of the Representation of People Act, 1951, whether or not recognized by the Election Commission of India, is allowed as deduction. The assessee has paid donation to JOGO party, which is registered u/s 29A of the Representation of People Act, 1951. The donation has been paid by cheque and the proof of payment along with receipts, confirmation letters and details of registration with Election Commission of India is furnished to the CIT(A). The assessee also furnished report filed by the JOGO party with Election Commission of India in Form No. 24A, which contained the particulars of name and address of donor. The A.R. further submitted that donation paid by the assessee is satisfied all the tests laid down by way of sec. 80GGC to be quali....
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....ission of India is deductible u/s 80GGC of the Act. The only requirement is that the political party must be registered u/s 29A of the Representation of People Act, 1951 and the payment must be made other than by cash. 8. In the present case on hand, on perusal of facts, we find that the assessee has paid donation to JOGO party by way of cheques. The assessee has furnished cheque details for having paid the amount. The assessee also furnished details of political party along with confirmation letter issued by the JOGO party. On perusal OF details available in the paper book, we find that JOGO party is registered u/s 29A of the Representation of People Act, 1951 by the election Commission of India. The assessee has furnished letter issued by the Election Commission of India, notification published in the Gazette of India and Form No. 24A a return of contributions submitted to Election Commission of India in terms of sec. 29C of the Representation of People Act, 1951. All the documents indicate that JOGO party is unrecognized registered political party u/s 29A of the Representation of People Act, 1951. The contribution return in form No. 24A filed with Election Commission of India, ....
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....further verification of confirmation letters and ledger extracts, we find that all the creditors pertain to purchase of goods from parties and are brought forward from previous year and squared up during the current financial year. 11. Section 68 of the Act provides for addition, where any sum is found credited in the books of an assessee maintained for the previous year and the assessee offers no explanations about the nature and source thereof, or explanations offered by the assessee is not in the opinion of the A.O. satisfactory, then sum so credited may be charged to income tax as the income of the assessee of that previous year. A plain reading of section 68 of the Act, makes it clear that any sum found credited in the books of accounts of the assessee is not explained to the satisfaction of the A.O., then sum found credited shall be treated as income of the assessee of that previous year. In other words, addition can be made for fresh credits of the year and no addition can be made for the amounts brought forwarded from the previous year. In the present case on hand, on perusal of facts, we find that all creditors are brought forward from last years and paid during the curre....