2012 (6) TMI 866 - AT - Income Tax

Summary

Issues involved: Appeal against the order of the Commissioner of Income-tax (Appeals) regarding deduction u/s 80GGB for donations made to political parties for the assessment year 2005-06.

Grounds of appeal:
1. CIT (A) erred in not allowing deduction u/s 80GGB as claim was not made in the return.
2. CIT(A) erred in not allowing deduction based on a Supreme Court judgment.
3. CIT(A) should have adjudicated the claim on its merits.
4. Authorities should consider and allow deduction u/s 80GGB for donations made.
5. Appellant seeks to submit additional grounds.

Details of the judgment:
The Appellate Tribunal, ITAT CALCUTTA, heard the appeal filed by the assessee against the order of the Commissioner of Income-tax (Appeals) for the assessment year 2005-06. The assessee claimed deduction u/s 80GGB for donations made to political parties, which was denied by the lower authorities citing non-inclusion in the original return. The Tribunal considered submissions from both sides. The learned AR argued that the claim was not allowed due to non-inclusion in the original return, while the learned CIT/DR supported the lower authorities' decision. The Tribunal noted the Supreme Court's decision in Goetze (India) Ltd case, which empowered the Tribunal to direct the Assessing Officer to consider the claim, even if not made in the original return. Therefore, the Tribunal directed the Assessing Officer to grant the deduction for donations made to political parties as claimed by the assessee. As a result, the appeal of the assessee was allowed, and the deduction u/s 80GGB was granted for the donations made to political parties.