ITAT Upholds Disallowance of Political Donation Deduction Under Section 80GGC:

The assessee filed an appeal before the Tribunal against the order dated 19 March 2026 passed by the CIT(A)  under Section 250 of the Income Tax Act, 1961, for Assessment Year 2019–20.

The assessee challenged the reassessment proceedings on several grounds, including the validity of the notice issued under Section 143(2) in relation to an allegedly invalid return, the assessment order passed under Section 144B read with Section 147, the notice issued under Section 148A(b) without supplying the relevant information and material, and the validity of the order under Section 148A(d) and the notice under Section 148. The assessee also questioned the approval under Section 151 as mechanical and invalid, contended that the notice under Section 148 was time-barred, and challenged the disallowance of Rs 4,21,000 claimed under Section 80GGC.

At the time of hearing, no one appeared on behalf of the assessee. The Tribunal proceeded to adjudicate the appeal on merits based on the material available on record. With regard to the deduction claimed under Section 80GGC, the Tribunal observed that the issue was covered by its decision in Saurabh Pravinbhai Patel Vs  ITO Case dated 30 April 2025. In that case, the disallowance under Section 80GGC had been upheld on the basis of investigation material, the bank trail and the modus operandi of the recipient political party.

The Tribunal found no infirmity in the order of the CIT(A) affirming the Assessing Officer’s disallowance of the deduction claimed under Section 80GGC. Accordingly, the Tribunal dismissed the assessee’s appeal and sustained the disallowance of Rs 4,21,000 claimed under Section 80GGC of the Income Tax Act, 1961.