Assessee donated Rs. 15 lakhs to a political party and claimed a deduction under section 80GGC. Assessing Officer, after recording that evidence had been verified, accepted the claim and completed the assessment. Subsequently, a search under section 132 was conducted in the case of said political party, and it was found that it was engaged in a bogus donation racket whereby donations received through banking channels were returned to donors in cash after deducting commission. On the basis of the same, the Principal Commissioner issued a notice under section 263 to the assessee proposing to revise the order of the Assessing Officer on the ground that the donation was not genuine. On appeal, the Tribunal held that the assessee had furnished all details in response to notice under section 142(1), including receipts and bank statements, which were verified by the Assessing Officer. Further, no incriminating material, no third-party statement, and no specific adverse fact connecting assessee’s donations to any bogus transaction had been brought on record by the Principal Commissioner. Therefore, assumption of jurisdiction by Principal Commissioner under section 263 was unsustainable in law.(AY. 2020-21)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 263: Commissioner-Revision of orders prejudicial to revenue-Donation to political party-Bogus donation-Kisan Party of India-Allowed deduction after verifying supporting documents and evidence-No direct incriminating material against assessee-Revision order was quashed.[S.80GGC, 132] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-61473","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fZv","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61473","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=61473"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61473\/revisions"}],"predecessor-version":[{"id":61474,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61473\/revisions\/61474"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=61473"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=61473"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=61473"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}