2020 (1) TMI 1734

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....ng Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2015-16. 2. The grounds of appeal filed by the assessee read as under: "1.0 The learned CIT (A) erred in disallowing a sum of Rs. 14,00,000/- u/s 80 GGC in respect of donation to two political parties. The learned CIT (A) grossly erred in confirming such addition. It is submitted that since the appellant has led all evidences to prove the genuineness of the donation and the same fulfils all the requirements of section 80GGC, the same should be allowed to him. It is submitted that it be so held now. 2.0 The learned A.O. erred in rejecting the explanation of the appellant in respect of such donation and erred in disallowing the same u....

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....issued by Election Commission of India. A show cause notice was issued by the AO to the assessee to produce bank passbook statement to substantiate the claim which was duly complied with highlighting the donation debited in the bank statement together with name, cheque number etc. It is claimed on behalf of the assessee that despite these facts, the AO disallowed the claim made under s. 80GGC of the Act on the preliminary ground that notice issued under s. 131 of the Act to Rashtriya Komi Ekta Party seeking confirmation of receipt of donation remained uncomplied with. Likewise, summons issued under s. 131 of the Act to Lok Janshakti Party remained unresponded. It was further observed by the AO that political party was not found the address ....

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....ared law of country and would seek an escape from providing vital information on contributions received under enquiry. Such leeway to a registered political party would to be fatal and would set a bad example to the society at large. 7. Therefore, having regard to the totality of the case, we consider it just and equitable to restore the issue back to the file of the AO for de novo examination in accordance with law after making suitable enquiry with political parties as may be considered expedient and after providing proper opportunity to the assessee. The assessee shall be at liberty to adduce such evidence as he may think fit to substantiate the bonafides of donations made and prove eligibility of deduction under s. 80GGC of the Act. ....