TaxTMI 
TaxTMI 
2026 (7) TMI 1975
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....ss examine these persons in view of judgement of Hon'ble Supreme Court in the case of Andaman Timber Industries vs Commissioner of Central Excise. Therefore, adverse inference drawn on the basis of third party statement is totally wrong & unjustified and assessment order is liable to be quashed. 2. That Ld. AO as well as CIT(A) erred in not allowing deduction of Rs. 600,000/- u/s 80GGC of the Act. Assessee has duly fulfilled all the conditions as prescribed for claiming deduction u/s 80GGC of the Act. Therefore, not allowing deduction of Rs. 600,000/- u/s 80GGC of the Act is totally wrong & unjustified and same is to be allowed in full. 3. That Ld. AO as well as CIT(A) erred in not allowing deduction of Rs. 3165/- u/s 80TTA of the Act. During the year assessee has interest of Rs. 3165/- on saving bank account and same was claimed as deduction u/s 80TTA of the Act. Your honour is requested to allow deduction u/s 80TTA as per the provisions of the Act. 4. That the assessee craves for leave to raise, withdraw, and amend any ground in appeal before or during the hearing of appeal." 3. Brief facts are that the assessee had filed his return for A.Y. 2019....
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....r facts and circumstances, the donation made to the same political party in the same year has been disallowed by the coordinate bench. 6. We have heard the rival submissions and perused the material available on record. Written submissions filed by both the parties have been taken on record. We have also carefully considered the decisions of the coordinate Benches relied upon by both the parties. 6.1 Admittedly, the assessee a salaried employee, has claimed deduction u/s 80GGC in respect of donation of Rs. 6,00,000/- given to the Rashtriya Samajwadi Party (Secular) through the banking channels. It is, however, noted that the Rashtriya Samajwadi Party (Secular) had not filed any contribution report since F.Y. 2013-14 and therefore during the year under consideration, the conditions laid down in section 13A were not fulfilled. For the sake of convenience, the relevant provisions of section 13A are reproduced below: "Special provision relating to incomes of political parties. 13A. Any income..... ..... ..... ..... Provided that-.... Provided further that if the treasurer of such political party or any other person au....
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....) controlled by either the persons running the party or by any other person) in the garb of various purchases or other payments, which are found to be bogus in nature. This money was then re-routed through various layers, and returned to the original donors, primarily in the form of cash, in lieu of some commission that ranges from 3.5% to 5%. It is pertinent to mention here that the political party doesn't pay any tax since it is exempt u/s 13A of the Act. 12. During the search proceedings, on 07.09.2022, statement on oath u/s 132(4) of the I.T. Act, was recorded of Smt. Sandhya Singh, National Party President of the Rashtriya Samajwadi Party (Secular).As evident from the declaration made on oath by Smt. Sandhya Singh that although she was national party president of the party, however, all the work related with was being looked-after by her husband Shri Bishwajeet Singh. She was not aware about any activity of the party. Further, vide Q.No. 18 and 19, she was categorically asked regarding details of bank accounts, books of accounts, nature and quantum of the expenditures of the Rashtriya, Samajwadi Party. In reply to the same, she again stated that she was not aware ....
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....the following two modus: 16. The party withdraws cash from its bank account and returns donated amount to the donors either directly or through angadiya/CAs/commission deducting certain commission. 17. Donated, amount was transferred to bank accounts of various dummy entities. The amount was transferred for layering purpose and to show that such entities had facilitated in purchase of agro-based products e.g. wheat, rice, vegetables etc, from the vendor of APMC market. At last, the donated amounts were transferred to accounts of vendor of APMC Market. From these accounts, cash was withdrawn and returned to donors after deducting certain commission. He had categorically stated that these transactions were sham transactions and reflected only on paper. He further stated that no goods were ever being purchased from any entities. He had also mentioned that cash were being withdrawn from the accounts of vendors of APMC Market as there was no restriction of cash with drawal on the bank accounts of vendors of APMC Market. 18. It is pertinent to refer to the fact that on verification with the website of regional Chief Electoral Officer where the party was registe....