TaxTMI 
TaxTMI 
TaxTMI 
2024 (6) TMI 724
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....ommission. Further, suspicions were raised regarding the misuse of party funds for accommodation entries. Appellant contends that all required details were furnished, and it was not their responsibility to verify the party's compliance. AO presumed the contribution to be an accommodation entry without concrete evidence, thereby infringing upon principles of natural justice. Appellant asserts that the claimed deduction is genuine and eligible, empahsizing its allowance. We reserve right to add alter, amend or delete any grounds of appeal. 2. 234 1. The learned AO had erred in law and on facts in levying interest under section 234A or 234B or 234C and 234D of the Act. The appellant denies his liability to pay interest under section 234A or 234B or 234C and 234D of the Act considering the above facts. 3. 271.1.c 1. The learned AO had erred in law and on facts in initiating penalty under section 271.1c of the I.T. Act. Considering the facts initiation of penalty proceeding under section 271.1.c of the Act required to be dropped. 4. GENERAL The appellant reserves its right to add, amend, alter substitute or modify all or any grounds stated hereinabove as the facts and ci....
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....n the show cause, the Assessing Officer mentioned that despite issuance of notice under section 133(6) to the said political party, they have not furnished their bank statement, highlighting the transaction during the relevant financial year and copy of Form-24A submitted to Election Commissioner of India. Thus, the genuineness of the transaction and existence of said political party is not established. The onus to prove the genuineness of such transaction/ contribution is on the assessee. The Assessing Officer in para-4.1 in the assessment order recorded that in response to show cause notice, the assessee submitted the same documents which were already filed by them and could not bring on record anything for justification their claim. The Assessing Officer recorded that assessee filed copy of ITR by said political party on 10.08.2017. On perusal of such ITR, the said political party, in the statement of income for the period ended on 31.03.2016 submitted nil amount regarding voluntary contribution, if received during the year by said political party. Further as per information on ITBA portal about ITR of said political party, they have mentioned that no contribution is received. O....
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....bout contribution to political party is valid and there is no evidence that assessee received back money on payment of commission. It is the presumption of Assessing Officer that bank account of 'Rashtriya Komi Ekta Party' has been utilized for accommodation entries purpose, where donors on one hand get advantage of deduction under section 80GGC, on the other hand getting money back after layer after paying commission. There is no single evidence available with the Assessing Officer for making such allegation. To support his contention, the assessee also relied upon the order of Ahmedabad Tribunal in the case of Soni Ishwarlal Harjivandas Vs DCIT in ITA No.2972/AHD/2008 dated 13.01.2012. 4. The NFAC/Ld.CIT(A) on considering the submission of assessee and the assessment order noted that assessees claim is to have made a contribution of Rs.50.00 lakh to Rashtriya Komi Ekta Party. The Assessing Officer on issuance notice under section 133(6), which remained un-response. The Assessing Officer also gathered information from jurisdictional assessing officer/ ACIT(E), Ahmedabad and found that said political party has not furnished any annual account and contribution report to Chief Elect....
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.... the Tribunal. 5. We have heard the submission of Ld. Authorized Representative (Ld.AR) for the assessee and Ld. Senior Departmental-Representative (Ld. Sr-DR) for the Revenue and have gone through orders of lower authorities. The Ld.AR for the assessee also filed written submission without seeking any permission or direction of the Bench, which running into six pages. The Ld. AR for the assessee submits that Assessing Officer disallowed the deduction under section 80GGC, on his observation that assessee contributed 50% of his earning to the said political party and that said political party has not furnished any annual account and contribution report to Chief Election Officer of Gujarat during last seven years. The Assessing Officer also held that bank account of said political party utilized for accommodation entry and found anomaly in the income tax return showing nil amount on voluntary contribution. The Ld. AR for the assessee submits that there is no restriction either in law, social or economic where a person cannot donate 50% of his income to a political party. The conclusion arrived by Assessing Officer on the percentage of donation qua income is itself wrong. It is the w....
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....ere furnished. Further the Assessing Officer also made investigation from Chief Electoral Officer of Gujarat about the affairs of said political party or furnishing statutory report about the contribution by general public to the political party and no such details are available with the said political party is unrecognized political party. All such facts were brought in the notice of assessee during assessment and in the show cause notice. In response to show cause notice, the assessee has simply took his plea that it is not his duty to verify the affairs of political party or non-compliance of statutory obligation. The Ld. Sr- DR for the Revenue submits that Assessing Officer as well as Ld.CIT(A) considered all the objection and submission of assessee before making / confirming the addition / disallowance of donation. The assessee's gross total income of Rs.1.08 crores during the year and he has donated half (1/2) of his income to such political party. The assessee has merely took a stand that it is not his obligation to verify the antecedents of such political party. The donation of half of earning by a person to such political party is beyond human probability. The test of huma....
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....at the ld CIT(A) held that the Assessing Officer brought sufficient information and evidence before issued show cause notice to assessee. The assessee has earned gross total income of Rs.1.08 crores out of which Rs.50.00 lakh was donated to unrecognized political party. There is no evidence that said political party is active or ever contested any regional election in state or national level. The assessee has not explained as to how he came with the contract with such political party and why such huge donation made to them. The ld CIT(A) held the assessee has not furnished anything either in the assessment proceedings or appellate proceedings as to why he donated almost his half gross total income earned to a paper political party about whom he does not even basis fact. The ld CIT(A) also held that the assessing Officer has brought more than sufficient material to prove that the done is a paper political party which is not recognized by Election Commissioner of India and have no address or infrastructure nor filed annual account to State Election Commissioner or Election Commissioner of India and confirmed the additions made by assessing officer. 9. We find that the ld CIT(A) dist....