TaxTMI 
TaxTMI 
2026 (2) TMI 489
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....furnished. 3. That the learned authorities erred in disregarding binding precedents where donations to political parties through banking channel were held eligible for deduction under Section 80GGC: ACIT vs. Armee Infotech - ITAT Ahmedabad, 2018 The ITAT Ahmedabad upheld the CIT(A)'s decision, noting that once the political party is registered under Section 29A of the Representation of the People Act, and payment is not in cash, the donor isn't liable to verify how the party uses the funds. Deduction under Section 80GGC should, therefore, be allowed. Sri Deepak Mittal Vijayawada vs. ACIT, ITAT, 2019 The ITAT held that the law only requires registration under Section 29A of the Representation of the People Act, and not recognition. Since the donation was made by cheque, and required documentation (receipt, Form 24A, registration proof) was provided, the disallowance was reversed. 4. That the disallowance is based on conjectures and surmises without any contrary evidence produced by the Department. 5. That the appellant, being a salaried person, had no motive to inflate deductions, and the donation was made in goo....
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....hat the requisite documentary evidences regarding receipt, PAN, registration certificate had already been furnished during the proceedings before the revenue authorities and also relied upon the decision of the Coordinate bench in the case of ACIT Vs. Armyee Infotech in ITA No. 1778/Ahd/2016 decided on 11.01.2022 and the decision in the case of Deepal Mittal Vs. ACIT. 8. On the other hand Ld. DR relied upon the orders passed by the revenue authorities. 9. I have heard the counsels for both the parties, perused the material placed on record, judgments cited before me and also the orders passed by the revenue authorities. From the records I noticed that the assessee had filed his Return of Income for A.Y. 2019-20 on 24.07.2019 declaring total income of Rs. 7,31,630/-. The ITR filed by the assessee was processed u/s. 143(1) of the Act. 10. As per the facts of the present case, the AO received information from DDIT(Inv) regarding scam in the form of donations to political parties for claim of bogus donations u/s 80GGC / 80CCB of the Act which were rerouted back to the owner in cash RTGS / NEFT or other banking channels. Since the Rashtriya Samajwadi Party (Secular) was one of ....
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....t aware of any details regarding these subjects. She stated that all these things are being handled by her husband Shri Bishwajeet Singh. 13. The statement of Shri Bishwajeet Singh, on oath u/s 132(4) of the I.T. Act, was recorded on 07.09.2022. However, during the statement proceedings, Shrí Bishwajeet Singh admitted the fact that on his instance, his wife Smt. Sandhya Singh joined RSP, as president. During the statement proceedings, Shri Bishwajeet Singh also revealed that the party i.e. RSP was involved in bogus donations scam across India and founder of party i.e. Shri Surya Nath Chaturvedi carried out bogus donations scam since inception of the party. He further stated that after deducting certain commission donations were being returned to the donors. Shri Bishwajeet Singh further explained the modus-operandi of the bogus donation scam. He stated that Shri Riteshkuraar S Shah arranges bogus donations for the party as Ritesh Shah had wide network of CAs across India. Thus he used to convinces CAs for bringing bogus donations to the party and Ritesh Shah was keeping and issuing donations receipts to the donors through these CAs. Bishwajeet, Singh further stated that h....
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....ujarat State, it was been found that Rashtriya Samajwadi Party (Secular) had not filed any contribution report, since F.Y. 2013-14 onward (details with respect to fil ing of contribution report was available on the state CEO's website from F.Y. 2013-14 to 2021-22). 19. It is thus evident that the conditions laid down in section 13A of the Income Tax Act was clearly not fulfilled by the party since F.Y. 2013-14. Accordingly, the party was not entitled to claim exemptions on the income earned since F.Y. 2013-14. In this connection, details of ITR and the date of filing of report u/s 29C of R.P. Act since 2017-18. 20. From the entire facts as discussed by me above I found that its crystal clear that not only had the party been claiming wrong and invalid exemption, over the years under section 13A of the I.T. Act but it had also been, mentioning in its Income Tax Return of F.Y. 2018- 19 that no contribution report had been filed u/s 29C of the R.P. Act, 1951. 21. In view of the facts discussed above, I am of the view that donation received by "Rashtriya Samajwadi Party(Secular) was bogus and cash had been received back by the assessee in lieu of cheque. The entire modus op....
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.... the settled proposition of law that a judgment or decree obtained by playing fraud on the court is a nullity and non est in the eyes of law. Such a judgment/decree by the first court or by the highest court - has to be treated as a nullity by every court, whether superior or inferior. It can be challenged in any court even in collateral proceedings." 24. In the said case it was clearly stated that the courts of law are meant for imparting justice between the parties and one who comes to the court, must come with clean hands. A person whose case is based on falsehood has no right to approach the Court. A litigant who approaches the court, is bound to produce all the documents executed by him which are relevant to the litigation. If a vital document is withheld in order to gain advantage on the other side he would be guilty of playing fraud on court as well as on the opposite party. In Smt. Shrist Dhawan v. M/s. Shaw Brothers [AIR 1992 SC 1555] it has been opined that "fraud and collusion vitiate even the most solemn proceedings in any civilised system of jurisprudence. It has been defined as an act of trickery or deceit. The aforesaid principle has been reiterated in Roshan D....