India's ITAT orders fresh hearing in donation exemption case and overturns unsubstantiated tax additions

The Income Tax Appellate Tribunal (ITAT) in Mumbai remanded the Section 80GGC donation case of taxpayer Sarika Ravka for a fresh hearing. Ravka had claimed a full exemption on a Rs 5 lakh donation to the Rashtriya Samajwadi Party (Secular) for FY 2019‑20, which the Assessing Officer treated as fake following a fraud investigation. The lower appellate authority dismissed her appeal on procedural limitation grounds without considering the merits. ITAT directed the CIT(A) to allow a condonation‑of‑delay application and rehear the case on its substantive issues.

Separately, the ITAT in Chandigarh deleted several on‑money additions against members of the Kalta group, including a Rs 90 lakh addition for alleged cash payment in a property purchase and a Rs 27 lakh addition for unaccounted liquor purchases. The tribunal found the additions were based solely on unsigned agreements, WhatsApp chats, and third‑party documents lacking independent verification. Consequently, all disputed additions for assessment years 2020‑21 to 2023‑24 were erased, including a protective addition of Rs 230 lakh tied to a property transaction.