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TMI Blog2024 (6) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... e receipt of contribution/ donation to the said political party along with the bank statement. No certificate is furnished in the form of verification of list of documents, if such bank statement is filed before lower authorities. Filing of such documents which were not certified, if filed before lower authorities, is not permissible. In view of the aforesaid factual discussions, we do not find any merit in the grounds of appeal raised by the assessee. As the impugned political party is an unrecognized political party. Thus, grounds of appeal raised by the assessee are dismissed. - SHRI PAWAN SINGH, JUDICIAL MEMBER AND Dr ARJUN LAL SAINI, ACCOUNTANT MEMBER For the Assessee : Shri Rakesh Shah, CA For the Revenue : Shri Vinod Kumar, Sr-DR ORDER PER PAWAN SINGH, JUDICIAL MEMBER : 1. This appeal by assessee is directed against the order of National Faceless Appeal Centre, Delhi [for short to as NFAC/Ld. PCIT ] dated 30.11.2023 for assessment year 2016-17, which in turn arises out of assessment order passed Assessing Officer passed assessment order under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) dated 25.12.2018. The assessee has raised the follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification on website, mentioned on the receipt of such political party, the Assessing Officer found that such political party was not found. In order to verify the genuineness of claim of assessee and existence of political party, the Assessing Officer issued notice under section 133(6) to such political party. The Assessing Officer recorded that no reply was received from such political party. The Assessing Officer was also obtained information from Asstt. Commissioner of Income-tax (Exemptions), Circle-1, Ahmedabad, wherein assessment proceedings were carried out in case of M/s Rashtriya Komi Ekta Party of assessment order in respect of such political party was passed on 29.12.2017. The assessing officer was informed that during assessment, the said political party has not furnished any annual audited account and details contribution report to Chief Election Officer (CEO) from the last seven years. The Assessing Officer further called for information from Chief Election Officer Gujarat and Election Commissioner of India. The Election Commissioner of India informed that M/s Rashtriya Komi Ekta Party is unrecognized political party and had not furnished their annual audited account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arty and ideology or working or if they contested any Election on the symbol of their political party. On the basis of such adverse report / material gathered by Assessing Officer, the Assessing Officer disallowed the entire donation of Rs.50.00 lakh under section 80GGC in the assessment order dated 25.12.2018. 3. Aggrieved by the disallowance of donation, assessee filed appeal before NFAC/Ld.CIT(A). Before NFAC/Ld.CIT(A) the assessee filed detailed written submission. The submission of assessee are recorded in para-5 of the order of NFAC/Ld.CIT(A). In the written submission before NFAC/Ld.CIT(A) the assessee submitted that disallowance of deduction under section 80GGC is arbitrary based on unwarranted findings. The assessee furnished required details during assessment proceedings, it was not the responsibility of assessee to verify whether the said political party has filed its annual account or contribution report to the authorities required. The assessee obtained receipt of contribution / donation which bears the details of such political party as well as certificate under 29A, which bears the registration number of said political party. The Assessing Officer presumed that it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whom he does not even basis fact. It was the duty of assessee to check and verify the existence of such unrecognized political party. 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. The Ld.CIT(A) concluded that Assessing Officer rightly treated the said political party as mere pare concerned and used to provide accommodation entry. The case law relied by assessee in case of Soni Ishwarlal Harjivandas (supra) was distinguished on fact by NFAC/Ld.CIT(A), in the said case, the political party involved to receive the contribution furnished the statutory form and notified with the Election Commissioner of India and Election Commissioner of India certified that said Rashtriya Vikas Party was a recognized National Political Party. However, in the present case, said political party is an unrecognized political party. Moreover, the confirmation was filed about the donation to political party. In another case of Pavan Anil Bakeriv v. DCIT [202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... much more beyond assessee s power, if the said political party has not furnished the required report to Chief Electoral Officer of State or Election Commissioner of India, the assessee cannot be made a victim of such mistake by said political party. It is not the subject- matter of assessee s control and assessee was supposed to provide information about political party and its ideology. In the entire exercise, carried out by Assessing Officer, if he failed to prove any mistake on the part of assessee. The Ld. AR for the assessee submits that Co-ordinate Benches of Ahmedabad ITAT in the case of ACIT vs. Armee Infotech in ITA No.1778/AHD/2016 dated 11.01.2022 has allowed similar deduction on contribution to same political party. The ld AR for the assessee also relied on the decision in Soni Ishwarlal Harjivandas Vs DCIT in ITA No. 2972/Ahd/2008 dated 13.01.2012. 6. On the other hand, Ld. Sr-DR for the Revenue supported the order of lower authorities. The Ld.SR-DR for the Revenue submits that Assessing Officer made a full-fledged investigation and brought sufficient materials on record to prove that claim of contribution by assessee to said political party is ingenuine and neither a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant financial year and copy of Form-24A to Election Commissioner of India. The assessing officer also held that the genuineness of the transaction and existence of said political party is not established by the assessee. The Assessing Officer further held that only copy of ITR by said political party was filed on 10.08.2017, wherein in the statement of income for the period ended on 31.03.2016 they have shown nil amount regarding voluntary contribution, Further, as per information on ITBA portal about ITR of said political party, they have mentioned that no contribution is received. The Assessing Officer further held that even in the preceding year, the assessee has paid similar contribution of Rs.35.00 lakh to the same political party, which is also more than 40% of the gross total income. The Assessing Officer took his view that assessee is contributing almost 50% of his income in all two years to said political party and such political party has not contested any election nor they have any presence in the Regional or at National level. On the basis of such adverse report / material gathered by Assessing Officer, the Assessing Officer disallowed the entire donation of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tribution to such political party, except claiming that it is not his duty to verify the affairs of such political party. It is not the case of the assessee that he is one of the main officer bearer or having any organisational post either at the District level or State level in the said political party. Even the assessee has not provided the details of his bank account or the bank account of such political party. Before us, the assessee has filed copy of the receipt of contribution/ donation to the said political party along with the bank statement. No certificate is furnished in the form of verification of list of documents, if such bank statement is filed before lower authorities. Filing of such documents which were not certified, if filed before lower authorities, is not permissible. In view of the aforesaid factual discussions, we do not find any merit in the grounds of appeal raised by the assessee. 11. The case laws relied by the ld AR for the assessee is not helpful to the assessee as the facts of the case in hand is quite distinguishable on facts. In case of CIT vs. Armee Infotech (supra), the assessee is the said case made donation to six different entity including to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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