IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH MUMBAI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER &

SHRI MAKARAND VASANT MAHADEOKAR, ACCOUNTANT MEMBER ITA No. 5775/Mum/2025 (Assessment Year: 2019-20)

(Assessment Year: 2019-20)

(Assessment Year: 2019-20)

(Assessment Year: 2019-20)

(Assessment Year: 2019-20)

(Assessment Year: 2019-20)

(Assessment Year: 2019-20)

Assessee by Shri M. M. Golvala, Ld. AR Revenue by Shri Surendra Mohan, Ld. DR Date of Hearing 07.01.2026 Date of Pronouncement 13.01.2026 आदेश / ORDER PER MAKARAND VASANT MAHADEOKAR, AM:

This appeal by the assessee is directed against the order dated 21.07.2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, under section 250 of the Income-tax Act, 1961, for Assessment Year 2019–20, arising out of the assessment order dated 20.01.2025 passed by the Assessing Officer under section 147 read with section 144B of the Act.

2. The brief facts of the case are that the assessee is an individual. For the year under consideration, the assessee filed his original return of income under section 139(1) of the Act on 24.10.2019, declaring a total income of Rs. 1,48,76,220/-, after claiming deductions aggregating to Rs. 6,85,000/- from a gross total income of Rs. 1,55,61,223/-. Subsequently, a revised return under section 139(5) was filed on 25.10.2019, declaring the same total income, with an additional disclosure of TCS of Rs. 19,090/- .In the return of income, the assessee, inter alia, claimed a deduction of Rs. 5,00,000/- under section 80GGC of the Act in respect of a donation stated to have been made to Kisan Party of India, a political party stated to be registered under section 29A of the Representation of the People Act, 1951. The return was initially processed under section 143(1) of the Act.

3. Subsequently, the Jurisdictional Assessing Officer received information through the Risk Management Strategy of the Board, based on inputs from the Investigation Wing, pursuant to search and seizure operations under section 132 conducted in the case of certain Registered Unrecognized Political Parties (RUPPs). As per the said information, some political parties, including Kisan Party of India, were allegedly engaged in providing accommodation entries in the guise of political donations, whereby amounts received through banking channels were returned to donors after deduction of commission.

4. On the basis of the said information, proceedings under section 148A were initiated. A notice under section 148A(b) was issued to the assessee, calling upon him to explain why proceedings under section 148 should not be initiated. The assessee submitted a reply stating that the donation was made through account payee cheque, that the recipient political party was duly registered under section 29A, and that the requisite documentary evidences such as donation receipt and bank statement had been furnished.

5. The Assessing Officer was not satisfied with the explanation furnished and, after obtaining approval of the specified authority, passed an order under section 148A(d), followed by issuance of notice under section 148 on 19.04.2023. In response, the assessee filed a return of income on 18.05.2023, declaring the same income as originally returned and again claiming deduction under section 80GGC of Rs. 5,00,000/-.

6. During the reassessment proceedings, the Assessing Officer raised specific queries regarding the genuineness of the donation, including the circumstances in which the assessee came to know about the political party, the rationale for making a donation to a party allegedly having no political presence in Mumbai, the mode of delivery of the cheque and receipt of the donation acknowledgment, and the identity of intermediaries, if any.The Assessing Officer noted that the assessee was unable to furnish satisfactory explanations with regard to the surrounding circumstances of the donation and merely relied on the fact that the payment was made through banking chan