ITAT Remands Rs 4 Lakh Section 80GGC Deduction Dispute to CIT(A) :

The assessee is Anuj Agarwal who challenged the assessment order dated 3 February 2025, passed under Section 147 read with Section 144B of the Income Tax Act, 1961, for Assessment Year 2019–20. The assessment involved certain additions, which the assessee contested before the CIT(A). The CIT(A), by an order dated 11 June 2026, dismissed the appeal. 

Before the Tribunal, the assessee argued that the reopening of the assessment was contrary to the provisions of law and that the proceedings initiated under Section 147 were invalid. It was further argued that the CIT(A) had wrongly disallowed the deduction claimed under Section 80GGC and had failed to adjudicate all the grounds of appeal, thereby violating the principles of natural justice.

The Tribunal observed that the assessee claimed to have contributed Rs 4,00,000 to a registered political party through banking channels and sought a deduction under Section 80GGC of the Act. The Department, however, alleged that the political party was among those accepting bogus donations.

The Tribunal noted that, although the CIT(A) had considered various Tribunal orders before dismissing the appeal, the authority had not adjudicated all the grounds raised by the assessee or examined the factual aspects of the case. In view of these deficiencies, the Tribunal remanded the matter to the file of the CIT(A), directing the authority to decide the appeal afresh and record specific findings on every ground of appeal after considering the assessee’s submissions and any documents filed in support of the claim.