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2 clusters · 2 sources · 30 days · First seen · Last updated

Indian ITAT rulings on political donation tax deductions

Overview

The Income Tax Appellate Tribunal (ITAT) in India has issued rulings regarding tax deductions for political donations made under Section 80GGC of the Income-tax Act.

In Ahmedabad, the tribunal waived a ₹2.31 lakh penalty against a taxpayer who had claimed a deduction for a donation to the Manav Adhikar National Party. The tribunal noted that the tax department failed to prove that the disallowance of the deduction constituted misreporting of income.

Similarly, the ITAT Rajkot ruled in favor of a taxpayer claiming a ₹1,80,000 deduction for a contribution to the Yuva Jan Jagruti Party. While authorities alleged the recipient party facilitated bogus donations, the tribunal held that a donor cannot be penalized for a party’s alleged misconduct if the donation was made through legitimate banking channels and the party was registered at the time.

Entities

Yuva Jan Jagruti Party · Manav Adhikar National Party · Income Tax Appellate Tribunal · Ahmedabad ITAT · Nitin T. Bhuptani

Timeline

  1. [BUSINESS] 2 sources
    ITAT Rajkot allows tax deduction for political donation

    The ITAT Rajkot ruled that taxpayers are entitled to Section 80GGC deductions for political donations made via banking channels, even if the recipient party faces allegations of misconduct.

  2. [BUSINESS] 3 sources
    Ahmedabad ITAT waives ₹2.31 lakh income-tax penalty

    The Ahmedabad ITAT has cancelled a ₹2.31 lakh income-tax penalty against a taxpayer over a disallowed ₹3.71 lakh political donation deduction.

Sources

taxguru.in · thetaxtalk.com