The donation to unrecognized political parties was deemed non-genuine, and related tax deductions were disallowed due to insufficient evidence of legitimacy.

आदेश/ORDER

PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-

This appeal is filed by the Assessee as against the appellate order dated 02.07.2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the reassessment order passed under section 147 r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2019-20.

2. Brief facts of the case is that the assessee is an individual filed his Return of Income for the Asst. Year 2019-20 on 26-10-2019 declaring total income of Rs.8,25,580/- after claiming deduction under Chapter VIA of Rs. 3,17,858/- which is inclusive of donation of Rs.1,50,000/- u/s. 80GGC of the Act given to Political Parties. The assessment was reopened since the assessee has given donation of Rs.1,50,000/- to Rashtriya Samajwadi Party (Secular) which is the registered unrecognized political party and claiming bogus deduction u/s. 80GGC of the Act.

2.1. In response, the assessee filed Return of Income on 22-05- 2023 claiming the same original return including donation of Rs.1,50,000/- u/s. 80GGC of the Act. The assessee was issued a show cause notice, in reply the assessee filed a donation receipt given by Rashtriya Samajwadi Party (Secular), copy of the relevant bank statement and Certificate of Registration of Rashtriya Samajwadi Party (Secular). The assessing officer considered the same and held that Post Search enquiries on registered unrecognized political parties group of Ahmedabad (23 registered unrecognized political parties), it was established that the donation made to such Registered Unrecognized Political Parties (RUPP) in the nature of scam claiming bogus deduction u/s. 80GGC/80GGB of the Act and intended to defraud the legitimate tax of the assessee. The amounts were returned to the donor after deducting certain percentage from it. As it was proved to be non-genuine and bogus, the same was disallowed and demanded tax thereon.

3. Aggrieved against the re assessment order, assessee filed appeal before Ld. CIT(A) who has confirmed the addition by detailed appellate order.

4. Aggrieved against the same, assessee is in appeal before us raising the following Grounds of Appeal:

1. That the re-opening of the assessment by the Jurisdictional Assessing Officer by issuing the notice us 148 is bad-in-law and the assessment order passed by the Faceless Assessing Officer also bad-in-law on two grounds viz. (a) the notice was issued without the A.O. recording his own satisfaction about the escapement of an income and (b) the notice should have been issued by the Faceless Jurisdictional A.O. in view of the provisions of section 151A of the Act as also the CBDT notification no. 18/2022 dt. 29-3-2022.

2. That the A.O. erred in not allowing deduction of Rs. 150,000/- claimed by the appellant in respect of a donation to a registered political party by NEFT/RTGS in spite of fulfilling all the pre-conditions laid down under the said section and producing the Donation receipt issued by the said political party. It is submitted that on the basis of the evidences produced by the appellant and the facts mentioned in the Statement of Facts, the said deduction is clearly admissible, particularly in the absence of any cogent evidence produced by the A.O. against the appellant and supporting the return of donation money to the appellant and hence, the same be allowed.

3. That the A.O. also erred in not allowing the deduction claimed u/s 80- GGC in violation of the principles of natural justice by not furnishing the copies of the statements recorded relied upon by him and by not